Insurers Increasingly Leveraging Third-Party Data Providers and AI-Enabled Services for Underwriting
Two new reports from Novarica profile more than 60 players in the data and underwriting ecosystem
Boston, MA (Sept. 19, 2019) – Property/Casualty underwriters are increasingly relying on third-party data for everything from property to cyber-risk, and the providers of data are proliferating. A new report from research and advisory firm Novarica, Third-Party Data in Insurance: Overview and Prominent Providers, reviews multiple insurance industry use cases for third-party data and examples of insurers that are investing in this area, and profiles 58 data providers.
Insurers are also increasingly leveraging third-party data for analytics augmentation and predictive modeling as well as for validating and cleansing existing data. A companion report, AI-Enabled Data and Analytics in P/C Underwriting: Overview and Prominent Providers, highlights how insurers are leveraging AI-enabled tools to streamline data collection and analysis and profiles eight prominent providers.
“Some vendors will say that this new AI-enabled intelligent data is better than — and can replace — the use of some traditional third-party data sources,” said Jeff Goldberg, Executive Vice President of Research and Consulting and lead author of Novarica’s new reports. “That enthusiasm greatly underestimates the importance of structured proprietary data sources, but Novarica does believe both have an important place in the underwriting process for insurers.”
Previews of the reports are available online:
Third-Party Data in Insurance: Overview and Prominent Providers
Insurers are increasingly interested in leveraging third-party data for analytics augmentation and predictive modeling as well as for validating and cleansing existing data.
This report reviews multiple insurance industry use cases for third-party data and examples of insurers that are investing in this area. It also includes profiles of 58 data providers that insurers use.
Topics
- Insurers data capabilities. Most insurers assess their data capabilities as relatively immature.
- Insurance use cases. This report focuses on marketing, underwriting, and claims.
- Established and emerging players. Profiles include types of data and typical use cases.
Key Points and Findings
- Drivers of third-party data usage include AI, customer experience, cost, and regulation. The need for large datasets to train AI and customer buying experience expectations that online retailers set both stand out as relatively new motivators.
- Privacy concerns have made data use transparency critical. Scandals such as Cambridge Analytica, along with the GDPR and similar regulations, have increased demand for transparency in how organizations use data and for what purposes.
- The hunger for data will increase as core systems incorporate more AI and analytics. The good news is that this should lead to greater efficiency and improved consumer experience.
Click here for the table of contents or to access the report.
AI-Enabled Data and Analytics in P/C Underwriting: Overview and Prominent Providers
Underwriters have come to rely on the many public and semi-public data sources and advances in AI. It’s now possible to take what has been a manual data-gathering process for underwriters and automate the matching, gathering, and analysis of this data, allowing it to be used in a similar manner to more traditional structured sets.
This report reviews the public and semi-public data available, the technology that is changing data collection, and how data can impact insurers’ underwriting and analysis. It also includes brief profiles of prominent providers including Carpe Data, DataCubes, Enigma, Guidewire Cyence, Intellect SEEC, Maprisk, Planck, and Terrene Labs. These data sources and vendors lean toward small commercial, but the implications are important for all insurers.
Click here for the table of contents or to access the report.
About Novarica
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
Source: Novarica
Tags: Artificial Intelligence (AI), data, Novarica, report Read the original article at Insurance-Canada.ca