Big Data to Determine the Future of the Insurance Industry
CIOREVIEW >> Banking & Insurance >>

Big Data to Determine the Future of the Insurance Industry

By CIOReview | Tuesday, April 15, 2014

FREMONT, CA: Big Data plays as an important role in the insurance industry and it also has the ability to change the future of the industry. This is done by examining the way customers behave in relation to the business. With effective analysis this information can be used to make decisions that will generate more effective and profitable customer engagement and relationships. Prioritizing Big Data will help insurers in managing the risks that are associated with certain markets. Big Data has become increasingly critical within the insurance industry and it has been noted that there is no other industry that can benefit more from the use of Big Data, reports Logan Bayan, Live Insurance News.

Big Data will allow insurers to balance their commitments, responsibilities and customer interests competitively. With advancing technology, and with people relying heavily on it, the data provide critical information which can be used by the insurance companies to overseer trends and understand consumer behavior better. 

Accepting technology is a slow process for most of the insurance companies, especially when it comes to the technology used by consumers. Consumers have a high standard with regards to mobile services because of the experiences they have had with other industries which have more experience in the mobile space. Thus the adoption of Big Data by the insurance industry is still in its nascent stage.

It is expected that Big Data may play a major role in determining the future of the insurance industry. Insurers may lose out on opportunities in understanding consumers and certain risks which exists in both the digital and physical world, if they do not pay attention to Big Data.

Big Data may also help insurers metamorphose to a future where the Internet and society are closely linked.

See Also: Financial Services Review