A PwC poll of insurance industry executives reveals that the vast majority (91 percent) agree that big data will be a main source of competitive differentiation for insurers in the future.
The poll, conducted at the insurance insights strategy conference, organised by Infoline and sponsored by PwC, also showed that over 90 percent of respondents think big data will be the main driver in the transformation of insurance companies’ business model.
Almost half of respondents agreed that big data is at the heart of informing and shaping strategy, highlighting the fundamental shift in how business is being done.
Jonathan Howe, UK insurance leader at PwC, said: “Big data and analytics are high on the agendas of nearly all insurance companies these days, and our poll confirms that the majority of insurers appreciate just how fundamental big data is to shaping their business and staying ahead of competition.”
Areas where big data will have the biggest impact are cited as customer insight (55 percent), and underwriting effectiveness (24 percent). 15 percent said that pricing optimisation will be affected the most.
Michael Spiteri, insurance analytics partner at the company, said: “It’s clear that in order to be effective in gaining competitive advantage from big data insurers need to be prepared to make changes across their organisation and make this a core part of their operation, as opposed to a one-off exercise. There is a mandate for action and this can’t be left for another day or another budget cycle.”
