ACORD announces the completion of a research study on data and analytics in insurance, conducted by Strategy Meets Action (SMA) in which North American members explained their priorities and plans for leveraging data and analytics for competitive advantage and included the future role of standards.
"Insurers are investing in analytics, with the survey showing that North American insurers spend about nine percent of their IT budgets on data and analytics," says Mark Breading, partner with SMA. "What is even more interesting is that business units outside of IT are spending approximately the same amount. All together this represents almost $10 billion in spending each year."
In addition, three-quarters of insurers plan to increase spending on analytics. A significant percentage of the survey participants are able to identified specific game-changing opportunities (such as pricing and fraud) for applying big data approaches. Survey respondents identified the top business and IT benefits of data standards and industry frameworks in the new age of analytics.
The top ranked benefits include promoting consistency for process management, enabling consistent definitions for application strategies, and providing a single reference model to bridge the business/IT gap.
"ACORD has been developing the ACORD Framework for over five years in response to our members and the insurance industry's needs for more precise data management and data consistency," says Shane McCullough, chief enterprise architect for ACORD. "I believe the framework models coupled with the existing data standards and standardized forms are crucial to the ever increasing needs of the industry for more detailed analytics and data quality. Without standards, it will become more and more challenging for insurers to wade through the mountains of data needed to do business."
More insights from the study on the current and future role of standards and frameworks are available at www.acord.org.
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