Big data adoption could create ‘gap’ in insurance

Insurance companies without a culture that supports big data analytics could soon be left behind, according to new research from Novarica. The industry, heavily driven by data, has been split in its adoption of the technology, with early adopters sprinting to the lead, a significant minority investigating big data and many companies still without the tools to compete.

"Insurers can profit immensely from the value of Big Data if they have created a culture where business leaders trust analytics and act on the insights provided," said Matthew Josefowicz, the survey's co-author. "All insurers should take steps to create the culture today if it doesn't already exist in their companies."

Josefowicz specified that factors such as the prevalence of legacy IT equipment at insurance companies is holding back industry-wide analytics adoption. Still, he stated that the survey found 15 to 20 percent of insurers are preparing to analyze unstructured data.

A recent Business Insider report from industry expert Jeremy Liew found that machine learning and big data have had a transformative effect at large life insurance firms. He described two large American firms waiving physical examinations for customers whose data suggests a healthy lifestyle.