An interesting article on Big Data which does give some insights into its application in a variety of industries, including Insurance.
However, as the world is becoming more sophisticated in understanding the world of data, we start to understand that this is simply the lowest strata on a 5 layer model that needs to exist to exploit it. The layers are:
1. Wisdom (ability to act on the Understanding)
2. Understanding (interpretation of the knowledge)
3. Knowledge (organised information)
4. Information (contextual data)
5. Data (a set of symbols)
On Thursday night, Pega held the latest in a series of executive dinners for the Insurance industry. The Pega Executive Forum was addressed by Daniel Hulme, one of the world leading speakers on data and AI, who held the room spellbound when he explained in very accessible terms what the implications were of leveraging this for our industry and society in general.
Insurance Industry-Specific challenges Lack of personalized services, lack of personalized pricing and the lack of targeted services to new segments and to specific market segments are some of the main challenges. In a survey conducted by Marketforce challenges identified by professionals in the insurance industry include underutilization of data gathered by loss adjusters and a hunger for better insight. Big data has been used in the industry to provide customer insights for transparent and simpler products, by analyzing and predicting customer behavior through data derived from social media, GPS-enabled devices and CCTV footage. The big data also allows for better customer retention from insurance companies.