Few insurers are capturing, analyzing, and gaining insight from big data, though a significant number plan to invest in the infrastructure for it within the next 12 months, according to new research released by the research and advisory firm Novarica.
"Data analysis is at the core of the insurance industry, meaning imminent investments in the infrastructure required to process big data is no surprise," says Martina Conlon, a principal at Novarica and author of the report. "Insurers are already broadly utilizing 'small data' analytics, such as geospatial data and consumer/business data, but the reality is that big data is not yet truly a priority for most insurers."
The report, "Analytics and Big Data at Insurers 2013," examines the current and likely future state of analytics capabilities and the preparation for use of big data. It is based on results of a survey conducted in April 2013 of 55 insurer CIO numbers of the Novarica Insurance Technology Research Council, a moderated membership group of more than 300 senior insurance IT executives.
"Insurers who do not have proximate plans to invest in big data can begin to prepare themselves now by outlining a technology vision drawn from business goals and IT principles," adds Conlon. "Developing a culture in which business leaders trust IT's vision and analytics-driven insights will be immensely helpful when insurers begin a more robust adoption of big data."
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