A Heat Map for Insurers’ Use of Consumer Data: Perspectives on Current and Future Data

by Nicolas Michellod, October 27, 2016
Industry Trends
Asia-Pacific, EMEA, Latin America, North America

Abstract

Celent has released a new report titled A Heat Map for Insurers’ Use of Consumer Data: Perspectives on Current and Future Data. The report was written by Nicolas Michellod, a senior analyst with Celent's Insurance practice.

The data environment insurers are facing today makes their business more complex. More than the question about how to collect consumer data, there is the crucial question of whether it is worth leveraging private consumer data they can capture through new collection channels including mobile devices and apps, connected objects, social networks, and other Internet platforms.
 
This report looks at factors that we think insurers should address when evaluating the pros and cons to invest in technologies allowing them to collect, manage, and use private consumer data. Insurers can analyse the factors at play when investing in data-related technologies. To do so, Celent recommends that they use a data heat map to assess internal and external factors along four dimensions including business operation, data access and supply, and the regulatory and sociocultural environments. We also propose an evaluation methodology to help insurers score the factors at play and identify suitable environments to launch their data initiatives.
 
“While it seems obvious that there is value to be derived from this data, there are constraints, risks, threats, and barriers insurers have to be aware of. The question of the value of private consumer data found on social networks and the Internet is complex,” Michellod commented.

“European insurers believe that external data sources have high value for their business, but it seems that they lag their US peers in terms of using data from social networks and Internet sources,” he added.

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

Introduction

2

 

About the Report

2

 

Key Research Questions

2

 

Methodology

2

 

Disclaimer

2

The Celent Insurance Data Heat Map

4

 

Defining Consumer Data and Data Capture Approaches

4

 

Factors Impacting Insurers’ Decisions

5

 

Business Operation

5

 

Access and Supply

7

 

Regulatory Environment

9

 

Sociocultural Environment

9

 

Potential Heat Map Use Cases

10

Evaluation Methodology

12

 

Objective

12

 

Environment Status

12

Applying the Insurance Data Heat Map

15

 

Business Operation

15

 

Access and Supply

19

 

Regulatory Environment

20

 

Sociocultural Environment

21

 

Scoring Summary

23

Final Thoughts

26

 

Disruption Vs. Status Quo

26

 

Static Vs. Dynamic Analysis

26

 

Global Vs. Granular Analysis

27

Leveraging Celent’s Expertise

28

 

Support for Financial Institutions

28

 

Support for Vendors

28

Related Celent Research

29

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