Data and analytics. Are there any hotter topics in the insurance industry today? It’s been nearly two decades since we began getting the computing power to gather, record and analyze data extremely fast, and less than a decade since new sources of digital data (smart devices, wearables, drones) became common. While insurers of personal lines were the first to move into analytics in a big way — setting auto policy premiums, for instance — many insurers of commercial lines are extremely bullish on technology and analytics’ role in creating a foundation for future success.
The new report “Data and Analytics in Insurance: P&C View Through 2020″ surveyed 87 carriers, and found that 92 percent of them are funding analytics initiatives this year! Cognitive models and artificial intelligence were the projects of most interest to commercial lines insurers.
The survey found that 26 percent of property and casualty commercial lines insurers intend to spend 10 percent more money per year on technology, data and analytics in the coming years. (That compares to just 4 percent of personal lines insurers.) Another 18 percent of commercial lines insurers expect spending increases of 6 percent to 10 percent per year, and 29 percent expect to spend 1 percent to 5 percent more per year. Only 6 percent expect to spend less money in the coming years. Of personal lines insurers, 82 percent expect to spend at least 1 percent more per year.
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