Insurers are among the data innovators. This is no surprise since risk calculation is the core of their business. Customer data holds great potential for other use cases in marketing, customer experience, and fraud detection. Flexible, fast-moving start-ups are radically changing the insurance market. They are using new AI-based services.
Insurers will have to redesign their data and analytics processes. The development of data-centric AI and analytics solutions is urgent. Traditional insurers striving for data-driven and data-based operations still face many obstacles.
Insurers cannot use or share data due to privacy restrictions. Flaws in demographic diversity or fringe cases can cause imbalances in analyses and predictions. Collecting accurate data on a large scale is also time-consuming and costly.
Policyholders’ sensitive and personal information is heavily regulated. Statutory and regulative pressure makes it extremely difficult to collaborate effectively with other legal entities and countries or outside vendors. However, the inability to accurately evaluate risks and insurance claims leads to incorrect pricing and marketing decisions.