Bigger Data: A Look at How Far Insurers Have Moved to Take Advantage of Opportunities

by Craig Beattie,  Nicolas Michellod, January 13, 2016
Industry Trends
Global

Abstract

Celent evaluates the insurance industry’s progress in Big Data.

In 2013, Celent published a report titled Perceptions and Misconceptions of Big Data in Insurance, which evaluated the industry’s appetite and state of investment in Big Data. In this report,

Celent revisits the adoption model to capture the progress the industry has made.

“There has been a strong increase in insurers employing people with advanced degrees, like PhDs, and solid knowledge of sophisticated tools including machine learning and predictive analytics techniques,” says Nicolas Michellod, a senior analyst with Celent’s Insurance practice and coauthor of the report.

“The greatest shift has been the perceived value or benefit of data. Consistent with what Celent is hearing anecdotally, even small data projects are demonstrating value and generally creating greater appetite for more information,” says Craig Beattie, a senior analyst with Celent’s Insurance practice and coauthor of the report.

This report provides results of a 2015 survey about insurers’ appetite and state of investment in Big Data and compares them with a similar survey conducted in 2013.

This report contains 15 figures and four tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Research Methodology

2

 

Survey Participants

2

Data Challenges in Insurance

5

 

What Is Big Data?

5

 

Ranking the “V” Challenges

7

Current Big Data Adoption

9

 

People and Tools to Look at Data

9

 

Attitudes and Benefits

11

 

Perceived Position of Competitors

13

 

Perceived Customers’ Expectations

14

Investments in Data-Related Technologies

15

 

Definition of Data-Related Technologies

15

 

Investment in Data-Related Technologies

16

 

Investment in Big Data

17

 

Top Priorities Using Big Data Infrastructure

18

Applying the Celent Big Data Adoption Maturity Model to Insurers

19

 

Have Insurers Progressed Since 2013?

19

 

Current Vs. Desired Situation

20

 

Filling in the Gaps

20

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

Sign in to download reports and access personalized information