A new report from the independent global analysts suggests that in order to be prepared the insurance industry should focus on creative initiatives that analyse data from a number of sources, including social media, third parties and machine-to-machine communications.
The report states that by concentrating predictive analytics on key areas of the business – such as business operations, marketing and customer relations – insurers will be able to determine which markets to enter or leave, shape target market initiatives and estimate potential losses for the book of business as each customer is added.
“Insurers are already well aware of the impending threats/challenges including tightening regulation, demanding customers, an ageing population and weakened economies,” said Barry Rabkin, principal analyst, Ovum.
“The critical differentiator for insurers will be minimising future risk thorough predictive analytics by tapping into the vast amounts of rich data.”
Rabkin also revealed that a new role is emerging, known as the data scientist role, and will be just as important to the insurance industry as a data miner.
“This role will take a deeper approach to research (i.e. collect more data and explore more hypotheses) and generate recommendations that are scalable down to individual lines of insurance business. Ovum believes that data scientists and data miners will work closely together to discuss “what if” questions regarding their predictive analytics initiatives,” Ovum stated in a press release.