Insurance Analytics – Turning Data into Dollars (from Deloitte)

The insurance team at Deloitte has recently published an excellent new report on insurance analytics.

I find this report enlightening because it covers all aspects that make analytics so valuable to insurance organizations.

• Data: We live in the big data era. Insurers that fail to take advantage of the data available to them to make better business decisions are essentially surrendering a huge advantage to their competitors. They are also forfeiting additional value they could provide to their customers.

• Algorithms: Traditional analytics were all about analyzing past data. Advanced analytics are all about using this data to predict future business outcome and help managers make better decisions to optimize these outcomes.

• Integration: No longer are analytics confined to the back office. Today’s competition is not only about making better decisions, but making them quickly enough to stay ahead of the field.

• Organizational culture: Making use of analytics requires managers to trust the data. This is not always easy. The data and analytics sometimes point in a direction that contradicts intuition and current business practice.

The report also does a good job explaining how seemingly small changes can make a sizeable difference in business performance. In highly competitive markets such as property and casualty insurance, these small changes often end up what separate the winners from losers.

Click here to access the report.

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