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May 06 2013 | Mark Breading

Boston, Massachusetts, May 6, 2013 – Strategy Meets Action (SMA) has just released a new research report - Data and Analytics in Insurance: P&C Plans and Priorities for 2013 and Beyond. This report explores both the current state and future plans for data and analytics in the property and casualty industry, highlighting meaningful differences between personal and commercial lines, and differences by tier (company size). This is SMA’s second annual study on data and analytics, and was conducted in conjunction with ACORD. 

The results provide insight into

  • how businesses are leveraging analytics today,
  • the types of analytics tools and approaches that are gaining favor with insurers,
  • how investments and projects differ for personal lines and commercial lines, and
  • insurer spending (inside and outside of the IT budget) on data and analytics.

The study confirms two major trends: increased spending on data and analytics, and broader usage of analytics beyond the traditional risk-centric applications. Most P&C and L&A insurers plan to increase spending from 2013 through 2015, with 83% of P&C and 87% of L&A insurers planning annual increases (both up from 2012). 16% of P&C insurers and 26% of L&A insurers plan annual increases of more than 10% of their budgets for data and analytics. Underwriting is still the number one business area for analytics investment, but spending will increase in product development, marketing, and other areas.

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.

The Life and Annuity segment report will be available later in May. Research results for both P&C and L&A will be presented at an ACORD webinar on June 12 (click here to register). Insurers, IT providers, and media who are interested in learning more about SMA’s data and analytics research and advisory services should contact Mark Breading at mbreading@strategymeetsaction.com or (614) 562-8310.