Other parts of this series:
- Data monetization – the next oil or fool’s gold?
- Insurtech firms could help carriers unlock vast data profits
- Five smart tips for successful insurtech partnerships
- Partnerships are the key to insurance data monetization
- Veracity is critical to the success of insurance data monetization
- Carriers must keep agile to stay in step with data laws
- Bold insurers are taking the lead in data monetization
Carriers should look further than just insurtech firms when scouting for data monetization partners.
Partnerships are likely to be critical to the success of insurers’ efforts to monetize their data resources. Most insurance companies don’t have sufficient skills, infrastructure or experience to use their huge stores of data to improve their operational efficiencies or create new markets.
Innovative insurtech firms, as I mentioned earlier in this blog series, can provide insurers with much of the insight, expertise and agility needed to effectively monetize big data streams.
However, insurers looking for partners to help them capitalize on data monetization opportunities shouldn’t limit their options to insurtech firms. Companies well established in their traditional markets can also be valuable partners. Many of these organizations have access to big reserves of data as well as considerable market knowledge and expertise that might be invaluable to insurers. Furthermore, some of these firms might have already begun monetizing their data. They could provide insurers with valuable insights into how best to capitalize on their data reserves. They could also help insurance firms ensure they have the data protection systems and processes necessary to safeguard information about their customers. Good data monetization partnerships should build trust, not only between the participants but also with their customers.
Several carriers have recently teamed up with companies from other industries to capitalize on data monetization opportunities.
Specialist insurer Beazley has joined forces with healthcare risk management company The Risk Authority Stanford (TRA Stanford) to enhance the analysis of its extensive claims database. Beazley is using TRA Stanford’s risk management software to identify claims trends and improve patient safety at the many hospitals it insures.
Allianz Global Corporate and Specialty, which oversees Allianz’s international corporate business, has combined with software and analytics company Praedicat to help its customers improve their handling of chemicals. The insurer is bundling Praedicat’s ChemMeta software with its liability insurance to enable its customers to better manage risk related to the handling of chemicals they produce or use.
Multinational specialty-risk insurer XL Catlin, recently acquired by AXA, is working with the Driven autonomous vehicle consortium in the UK. It is analyzing data from the consortium’s trials to determine the risks that are likely to be borne by the manufacturers, owners and operators of self-driving vehicles. The insurer has already developed insurance cover for organizations that design, develop, test and apply autonomous vehicle technology.
At Accenture we’ve teamed up with Pitney Bowes to develop an advanced property evaluation tool for insurers. The Property Evaluator uses extensive data sources to determine around 100 risk characteristics for properties that require insurance. If necessary, it alerts underwriters to potential concerns. The Property Evaluator substantially increases the speed and accuracy of property underwriting. Pitney Bowes provides the property data, geocoding and address validation for the product while Accenture developed the user-interface and alert algorithms.
Accenture has developed a further product that helps insurers use their data more effectively. Its Vector4D uses information cataloged by homeowners as well as data from sensors and smart-home monitors to determine property risks. Then if a storm, hurricane or earthquake occurs the Vector4D system uses third-party weather data to determine the damage that is likely to have been inflicted on the property. This quick assessment helps insurers react swiftly to help their customers when natural disasters strike.
In my next blog post I’ll discuss the importance of data veracity for insurers setting out to monetize their data. Until then, take a look at some of these links.