Insurers are underinvesting in data analytics because they can’t imagine all of the new uses. Here’s a perspective from someone who’s actively involved in Met’s analytics efforts.
Insurance is founded on the correct estimation of risk. Correct estimation is utterly dependent upon correctly interpreting and acting on the right data at the right time. But surprisingly for someone so dependent on information, the industry’s use of it has lagged other industries. We believe this is in part because carriers don’t have a good framework for thinking about data – which data they need, how to get it, how to measure it and what to do with it.