There is no question that analytics projects are viewed as game-changers, but insurers also see the need to focus on improving and enhancing their data to fully capitalize on the power of analytics. I’ve recently seen that confirmed through our second annual Data and Analytics study done in conjunction with ACORD (Data and Analytics in Insurance: P&C Plans and Priorities for 2013 and Beyond). We’ve gleaned a number of interesting insights by asking some key questions about important issues in the P&C space.
As most in the industry would guess, underwriting is still the number one business area for analytics investment. However, we are also seeing that spending will increase in product development, marketing, and some other areas. Two leading trends revealed in the 2012 study continue to be major players this year: increased spending on data and analytics, and broader usage of analytics beyond the traditional risk-centric applications. Most P&C insurers plan to increase spending from 2013 through 2015, with 83% planning annual increases (up from 2012). A good percentage of P&C insurers (16%) plan annual increases of more than 10% of their budgets for data and analytics.
If you’d like to hear more, our research results for both P&C and L&A (report available in June) will be presented at an ACORD webinar on June 12 (click here to register). For more information, please contact Mark at mbreading@strategymeetsaction.com.
