Will Big Data be the Biggest Movement for the Insurance Sector in 2022?


When it comes to adopting emerging technologies, the insurance industry has a track record of following in other sectors’ footsteps instead of leading the way.

Whilst it has been utilised previously to aid in managing customer relationships, over the last two years the insurance industry has learned the importance of strategically leveraging protective technologies towards their customer relationships.

Customer-Centric

The saving grace for insurance is that they have been very customer-centric from the very beginning, and the current era is opening doors for them to increase the lifetime value of working with their clients during uncertain times being faced.

This has opened a large door where insurance can become the standard-bearer in the innovative uses of big data analytics. Without the perspective on data that insurers have access to, many smaller to medium-sized carriers are not aware of the golden opportunity they find themselves sitting on.

The ability for data to transform internal business operations towards improving growth, profitability and risk reduction is great, and the agility to impress their client base with new ways of saving money and offering better protection is a huge plus on top of that. Thanks to larger insurers, insurtechs and technology vendors selling their insurance products, fears of losing money on new technology are starting to see a decline – with many using sensors, signals and smart devices to secure valuable customer data that has sat in policy and claims systems for decades.

Reliance on Actuaries

Before big science, big data analytics and AI/ML started to make headway in the insurance world, many insurers relied on actuaries to use existing P&C systems to identify the risks. These actuaries could have been the very barrier in experimentation with big data analytics all along, as fear of change in working and implementation of new technologies and processes are common not just in insurance but in other sectors also.

The threat of technology replacing real jobs is a major concern for many industries, but the focus of the role of actuary and data scientist should be one of focusing on interpreting analysis results formed from advanced visualisation tools – not preparing the data and looking at spreadsheets. Eliminating the challenging manipulation of data and relying on what you know is a change that forms and fuels good decision making.

Improvements in business intelligence and analytics should be valued by actuaries as the key assets to harnessing the accuracy of risk management efforts. For actuaries that have extensive experience in the organising and analysing of data from a manual or legacy system, data analytics and data science is definite improvements of tools to work with.

Client Demands

When it comes to clients, the thought that incorporation of new technologies will leave some clients in the dark is also a misguided thought process. Today’s clients are used to accessing new forms of technologies for everything they do – from Netflix to Amazon to UberEats to smart metres in their homes. Simplification is what is demanded from everyone for everything in the 2020s, and this is where insurers need to jump on the bandwagon with big data to transform their customers’ demands.

For an insurer to be able to recommend to a client that they adjust their coverages based on intelligence gleaned from data stores, sales and customer loyalty can only be increased and secured. Will the insurance industry follow suit or will they lead the charge in new and exciting ways to use big data analytics?

For more information on big data analytics and any upcoming data analytics conference, check out the upcoming events from Whitehall Media.