Big Data Analytics Adoption On The Rise, Says Gartner

By 2016, more than 25 percent of large companies will have used big data analytics to identify at least one security or fraud detection use case

Data analytics is gaining traction and will go mainstream in coming years. Research giant Gartner Inc. predicts that by 2016, big data analytics will be used by more than 25 percent large companies to counter at least one security or fraud detection use case. Presently, the figure is a mere 8 percent. Gartner also predicts that companies implementing big data analytics will achieve a positive return on investment within the first six months of implementation.

See also: US Insurance Market Report 2014

Avivah Litan, vice president and distinguished analyst at Gartner says, “Big data analytics gives enterprises faster access to their own data than ever. Enterprises can achieve significant savings in time and money when using big data analytics to stop crime and security infractions, by stopping losses and increasing productivity.” [@PCITplus]

Insurers Prefer Outsourcing Over Cost Reduction, Says Report

Research reveals boost in technology and business outsourcing owing to increased focus on customer experience and risk management by insurers

According to studies conducted by Everest Group, in 2012, information technology outsourcing (ITO) and business processing outsourcing (BPO) in insurance have witnessed growth of 18 and 15 percent respectively. Cost reduction is no longer the main focus. Companies, while doing outsourcing, are stressing on enhancing company technology.

The reports were prepared after analyzing the current market trends and predict the future of outsourcing relationships. The reports clearly highlight insurers’ need for strategic partners who can help with developing solutions that will boost efficiency and keep up with new technologies. [@PCITplus]

Top Insurance & Technology Stories of 2013

In 2013, insurance companies exceeded all expectations by launching innovative initiatives using next-generation technologies. Analysts and observers also opined about the industry’s potential for technology leadership in the coming years. Following are few of the most popular stories in 2013 that reflect the same. [@PCITplus]

• 6 Characteristics of an Insurance Digital Enterprise

Modern insurance businesses had recently shifted from systems of record to systems of engagement, a strategy that places more focus on effectiveness than efficiency. With these models, customer experience is multi-channel and based on collaboration. Big data, mobility, and cloud are all big drivers in systems of engagement. Read the full story

• 4 Ways Driverless Cars Are Poised to Shake Up Insurance

Small changes in cars, such as sensors and stability control, are already contributing to vehicle autonomy – but innovation can be risky. Some creations, such as airbags, create different risks. Early adopters of autonomous vehicles already need coverage, the article states, and driverless cars could affect the impact of telematics. Read the full story

• 5 Keys to Countering Claims Fraud

Commercial Insurers Getting Their Focus on Analytics

We may soon see commercial insurance industry getting broadly divided into two groups: companies that use analytics to gain profitable market share, and companies that do not use analytics and suffer from uninformed risk selections. The message is clear – Analytics is going to be a game changer in commercial insurance.

Valen Analytics in its report, “2014 Outlook: Commercial Lines” says commercial insurers are in a similar situation that the credit-card industry was in during the late 1980s and 1990s. “New marketing and risk-assessment strategies fundamentally changed the credit-card industry. Technology and information-based companies like Capital One flourished and garnered significant market share while those that clung to traditional methods floundered,” Valen commented on the basis of the findings of the report. [twitter.com/pcitplus]

Technology Vendors Need to Work with Carriers, Foster Innovation

Technology vendors must work in close coordination with Property and Casualty Insurance carriers to be more effective, says a new report from Boston-based Aite Group.

A new survey report entitled Insurance Technology Vendors and P&C Carriers: Alignments and Disconnects, which surveyed 23 Property & Casualty (P&C) Insurance carriers, notes that Data/analytics and operations were ranked the two top categories.

The 23 P&C Insurance companies who participated in the survey were asked to rank the various areas which were expected to have an impact on their business, product and services pertaiing to the needs of their customers over the next few years.