Gartner echoed those comments. In its report
"Top
Trends in Data and Analytics for 2021", the analyst
believes that Data and Analytics (D&A) is shifting to
become a core business function. "Rather than it
being a secondary activity done by IT to support
business outcomes, business leaders increasingly
think in terms of D&A as one of their key business
capabilities to drive their business results. As
organizations accelerate their digital business
transformation efforts, business-domain-led D&A,
data literacy, data monetization, smarter data-
sharing and adaptive governance increasingly play
key business roles."
So that's great news for the industry, right? Yes and
no.
BRAVE NEW WORLD | 2
In their March 2021 report titled "Insurance
2030 – The Impact of AI on the future
of insurance," McKinsey suggested that "AI and its related technologies will have
a seismic impact on all aspects of the insurance industry, from distribution to
underwriting and pricing to claims. Advanced technologies and data are already
affecting distribution and underwriting, with policies being priced, purchased,
and bound in near real time."
According to
PwC's annual AI Predictions survey, AI is hard. "Too many AI investments end up
as 'pretty shiny objects' that don't pay off. Most companies have yet to adapt talent
strategies, organizational structures, business strategies, development methodologies and
risk mitigation for a world that moves at AI speed."
The Challenges With Data
How big is BIG Data?
It's really, really BIG. That may be considered a trite answer, but take into account that 90%
percent of the world's data was created in the last two years. And it is estimated that every
two years, that volume of data across the world doubles in size.
Insurance companies thrive on data. It powers most of its products and operations -- from
underwriting to claims to policy administration to marketing and customer engagement --
across the enterprise. And it is key for corporate survival in a fast-changing environment. But
there are issues with harnessing that power for AI and data analytics.
