Insurance companies risk being bypassed by new, more agile data aggregators taking advantage of the digital era, as the data revolution looks set to transform the industry.
Insurance is an obvious choice for tech companies looking to take advantage of the reams of data they have at their disposal; Google Executive Chairman, Eric Schmidt, said the insurance industry was about to explode with uses of big data. Meanwhile, habitually risk-averse insurance companies threaten inertia by continuing with traditional actuarial business models.
A new BearingPoint Institute survey revealed big data is expected to have a significant impact on the industry, but insurance companies are yet to prepare themselves for the change:
Over two-thirds of our survey respondents said big data had a highly important role in the companys future and 71% rated it as a maximum priority by 2018.
But just 24% said they felt their companys maturity on the issue was advanced or leading and only 33% have started a departmental or company-wide implementation process.