Insurance companies, traditionally reliant on their market position, face a changing landscape threatened by re-insurers and Big Tech. New types of data offer both chances and hurdles for insurers. To succeed in this changing environment, insurers need to come up with smart ways to make money from their data.
Beginning with a review of their data architecture, insurers must ensure robust foundations for data collection, management and distribution. Using knowledge graphs and cloud technology helps handle data better and makes it more useful for AI.
Identifying data assets suitable for new products or services is crucial. Insurers should consider whether offerings enhance existing products or introduce entirely new solutions. Collaborating with InsurTech companies, experts in behavior and new technology, can help insurers create improved products together.
Recognizing that one approach doesn’t fit all, insurers must tailor their market strategies. Starting with internal data monetization, they can gradually explore opportunities for external partnerships and sales. Thinking about how to deliver services and how it might affect current relationships needs careful thinking and planning.
A global insurance broker operating in over 130 countries faced challenges from market saturation and new entrants. They made a lot more money by rethinking and selling their data products. Leveraging AI-powered solutions, they swiftly identified new opportunities, leading to the identification of approximately $100M in monetizable data product lines.
Insurers need to understand what clients want and make sure they have the right basics in place to make money from data. Insurers can keep customers happy, beat the competition and avoid losing money to new rivals by using strategies that match what they need.
Simply put, for insurers to do well in a changing world, making money from data is not just something trendy—it is crucial. By being smart with new ideas, insurers can make the most of their data and keep growing successfully.
