Insurance was built on analysing data yet today insurers are falling behind the masters of data management and analysis. Google, Facebook, Apply, Alibaba, Tencent and, of course that digital parrot on the shoulder- Amazon.
“Data, data, everywhere,
And all the silos did grow.
Data, data everywhere,
Nor any drop to analyse.”
To adapt Samuel Taylor Coleridge and The Rime of the Ancient Mariner
If insurers do not master this critical gap in capabilities then they may well be eclipsed or at best left with the business of managing claims and giving away gross margin to tech giant distributors and sellers of insurance.
An intriguing scenario is another industry with data analytics expertise and technology partnerships making a flanking attack on insurers. Carrefour the global retailer has 104 million customer households worldwide, 2 million insurance customers, a banking operation and technology collaboration with Tencent ( retail today but could be insurance tomorrow) .
Tesco owns its own bank, has an insurance and claims management joint venture with Ageas and 16 million Tesco Clubcard customers. With the right digital vision, strategy and implementation where could that go?
But stay calm insurers- you have a proven data and analytics platform already "insurance proven" which is also embedded in a scalable and proven digital insurance platform.
So compete now and compete hard to help ensure neither digital nor retail giants steal your premiums and profits. Nor the insurtechs like Lemonade that do master data.
"Technology and data, however, will change the insurance product because at its core, insurance is data. A digital insurance business is profoundly different from incumbent carriers, according to Schreiber. As a result, legacy insurers will have trouble in the digital age. Traditional and digital players “will not converge, they will diverge,” Daniel Schreiber CEO & Founder Lemonade Insurance Journal Oct 8th 2018
• Troves of Data The big secret in insurance is having a detailed information about the needs of our customers. Insurance companies fail at collecting the apt data, on the other hand, these giants have vast data and they know how to leverage analytics and AI to create better products for their customers. These big firms have data like- location, browsing and advertising data, behavioural data from Smartphone and IoT devices. Combining all these one can create a complete picture of human behaviour their interests and risk profile as well. • Software engineers and AI The complexity of insurance tradition is that one has to rely on the past to predict the future; this mammoth data can make it a tiresome and time-consuming job. On the other hand tech giants have thousands of engineers to create fantastic digital customer experience