Data Analytics Can Provide A Competitive Edge To Insurers

An article by McKinsey’s Richard Clarke and Ari Libarikian describes a new trend in how insurers use data in their businesses.

Gone are the days when insurers managed underwriting risk solely through actuarial data valuations, though these are still of crucial importance. Instead, advanced data analytics that rely on high technology computers and innovative sources of data now help insurers gain new insights into their business. Insurers are using innovations in mobile, social and cloud technologies, combined with advances in analytics software, to bring about process changes across their organization, including sales, marketing and service operations.

Insurers using data analytics: Case studies

In auto insurance, one company correlated data from credit bureaus with their own analysis based on very logical evidence...