Insurers rush to implement big data strategies

A new survey, from the independent polling firm Censuswide, has revealed that 83 per cent of UK insurance companies see the implementation of a big data strategy as their most critical priority in 2016.

The survey was commissioned by Teradata, which specialises in big data analytics and marketing applications, and polled 300 senior insurance industry figures throughout the UK, France and Germany.

According to the poll, big data is now the number one agenda item for insurers across Europe. 87 per cent of French and 90 per cent of German insurance executives stated a big data strategy was the top priority or of critical importance to their companies.

The ways in which UK insurers intend on using big data over the course of the next two years was also outlined in the survey. 47 per cent plan on utilising big data to help refine their customer acquisition strategy, to enhance customer engagement and to combat fraud. More than half (61 per cent) of those surveyed are preparing to launch their big data initiatives over the next 24 months in an effort to boost their profit margins.

Lesley Winrow, the Head of Insurance at Teradata, detailed the ways in which insurers across Europe have noticed the potential big data has to their businesses:

“Although there may be different emphases, we can see that in the UK, as in France and Germany, insurance companies recognise the huge commercial potential in analysing the massive amounts of customer and sensor data, giving them the ability to offer consumers new, tailored products and services as well as more sophisticated risk models to refine”.

Big data has a tremendous amount of potential in a variety of applications. If insurers are able to harness its power they could possible transform the insurance landscape and provide better opportunities for consumers.

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