How Data is Changing the Field in Insurance
There’s a new player in the insurance game, and its name is data. Not that data is new to the scene, of course: it underpins just about every business function in the industry: underwriting, marketing, product development, pricing, strategy, financial analysis.
But historically, the resource has been limited. Not so anymore. While insurers of decades past had to navigate data’s scarcity, today they face a different challenge: its super-abundance.
Data drives the future
Big data, telematics, analytics, predictive modeling. We’ve seen an “ever increasing amount of digital information being generated and stored,” said Bernard Marr, a Forbes contributor. To make sense of it, a spate of new tools and procedures has followed.
With more and better innovations emerging to take advantage of data’s many strengths, it’s moved swiftly from the sidelines into the field. “Regardless of what form it takes, data is and will be the engine that drives market forces now and in the future,” said John Devereux, Chief Actuary for Ryan Specialty Group in a recent article in Risk & Insurance.
Not a replacement … a necessity
The tools mentioned briefly above don’t replace the need for good underwriting. However, they’re here to stay, and their influence is bound to grow.
The advantage of using them is simple. Those who do will make better underwriting decisions. According to Devereux, insurers who take advantage of robust data solutions will be able to produce more appropriate pricing, select the best risks and avoid the lower-quality ones at market prices, and be among the first to identify winning strategies and opportunities.
On the flip side, those who don’t will lag. They’ll lag in response time. In their understanding of the nuances associated with certain risks. They’ll lag in the market. They’ll face adverse selection.
Roll out the welcome mat
“Innovation is critical to success in the insurance industry,” Devereux said. “We need to welcome data to the conversation.”
We agree. Which is why we’ve joined forces with Information Builders to bring our clients robust data solutions. Thanks to that partnership, as a Silvervine insurance software customer, you can:
- Instantly identify factors impacting your business
- Understand patterns and trends
- Get detailed reports combined with intuitive visuals
- Author and publish analytical content
- Deploy predictive analytics
- Create accurate forward-looking strategies
Don’t lag. Improve the quality of your underwriting through the power of analytic insight, and make data your MVP. Request a Silvervine Software demo to learn more.