In the new “We Economy,” insurers seeking to redefine their role are facing extensive transformation, particularly when it comes to managing and taking advantage of big data. Over the last several years, we have seen rapid advancements in data, from the types of data that can be collected through connected devices to how that data can be used in decision-making.
Accenture’s 2015 Technology Vision for Insurance reveals that 44 percent of insurers believe the data they manage has grown by 50 percent or more in the past year. In fact, the Internet of Things, user-generated content and other digital data sources are producing so much new, raw data every minute of the day that human operators are unable to keep up. The International Data Corporation (IDC) predicts that by 2020, there will be more than 40 zettabytes of data, 37 percent of which will be considered useful for analysis (up from 22 percent in 2013).
Machines are uniquely able to capitalize on the scale of big data and 83 percent of insurers agree that a new era of software intelligence will revolutionize the way we use data. Statistical algorithms will improve accuracy and will discover entirely new associations among the data—associations that humans might not have been able to hypothesize.
Whether consumers know it or not, and 83 percent of insurers believe consumers have a very limited view of how their data is used, big data and software intelligence has the power to help insurers achieve real, tangible business benefits, giving them the operational excellence and innovative edge they need to succeed in the “We Economy.”