Harnessing the Power of Data in the Insurance Industry

A recent Insurance Business article discusses the value insurers can gain through data insights, and the methods necessary for carriers to capitalize on data in a compliant manner.

"Lots of organizations have huge amounts of data at their fingertips but not many have the ability to see through the haze with clarity around how to turn that data into value, and how to do so in a compliant fashion," writes Insurance Business news editor Bethan Moorcraft. In the ever-consolidating insurance industry, compliance is becoming an increasingly important issue, requiring extra attention and diligence on behalf of carriers.

"In the past, insurers have traditionally spent relatively little time focused on the terms in which they're obtaining data," notes Dan Masur, partner in Mayer Brown's Washington, DC, office and leader in the firm's Technology Transactions practice. "New guidelines and pressures around compliance and the protection of personal information [now] requires insurance companies to focus much more attention on their terms and conditions around how they collect data and whether they have sufficient rights to use it for the purposes they intend to."

Brad Peterson, partner in Mayer Brown's Chicago office, closes the article with the following suggestion: "We recommend insurance companies to... [build] systems that are widely compatible, [keep] data clean and organized, and [make] sure they have rights to access the data on their systems." In this age of digital transformation, it is more important than ever for carriers to utilize new technology in order to best leverage the power of next generation data. Many insurance companies have already done so, engaging innovative InsureTech companies like Carpe Data to analyze emerging data.

Read the full article here. Insurance Business delivers the latest industry news, opinion and analysis, covering the developments of the day from government and regulatory bodies, platforms, underwriters and insurance firms, as well as industry service providers.