Current computing capabilities and a proliferation of data sources has unearthed new avenues for insurers to do business. For example, the current use of credit scores to underwrite car insurance and the use of social media to glean behavioural insights are the beginning signs of a revolution in the industry. The effectiveness with which new sources of data are explored and the level to which this data are exploited will be the key to success and profits in the future. More importantly, as competition between companies soon shifts to the realm of data mining, the ability to extract useful insights from the data could ensure a company’s survival.
However, to fully utilise these data, organisations themselves will need to change. This article mentions a few interesting ways in which data are currently being collected, proposes how this volume of data can be managed and suggests a framework for company transformation. It also makes some comments on how these data can be incorporated into models.