A survey by the business intelligence organisation FCBI suggests that the insurance industry is substantially increasing its application of data analytics expertise.
The study found that 72% of the insurers polled agreed with the statement: ‘Analytics is the biggest game changer for the industry in 2014-15.’ The statistic suggests that the industry is yet to fully exploit the potential of data analytics and is gearing up to do so, with this interpretation supported by the fact that 63% of the respondents intend to increase their analytics spend over the next 12 months.
Data analytic professionals contracting as umbrella company employees are likely to see a raft of new opportunities opening up in the insurance space as more organisations seek to build on the success of analytics in areas such as pricing and underwriting.
FCBI’s findings resemble those of specialist data analytics recruiter IQ Analytics, whose MD, David Di Domenico, said that his company had documented the rising importance of analytics amongst insurance firms ‒ both large and small ‒ for some time, especially over the last 18 months.
Mr Di Domenico added: “It is very interesting to see that the majority of those surveyed in this report saw underwriting as the area that had the most to gain from analytics. Conversations with a number of our clients in relation to their hiring plans, combined with trends in the requirements for professionals that we [have] been recruiting for, would suggest that areas such as pricing, claims and fraud will be just as prominent in the coming months. One thing that is certain is that organisations in the insurance sector are now starting to take analytics seriously.”