In the famous story, David (the underdog) defeated Goliath with a single slingshot. If the same story was set in modern day insurance, David would be strategic and tech savvy, and his slingshot would be data analytics.
According to a recent Fitch report, mutual and smaller insurers (David) risk being left out of the big data revolution, especially if they don’t keep pace with tech investments made by larger, multinational (Goliath) competitors.
The industry can no longer ignore modern technology. Conversely, it is a daunting task to manage and leverage the abundance of data available. To survive, companies must develop tools to analyze and integrate data into business decisions.
Larger companies have the resources to build in-house analytics teams. They can competitively price and win the most favorable risks, marginalize their competitors and force adverse selection upon them. But what if the Davids can’t outspend the Goliaths of the industry? Building and deploying predictive analytics internally is costly and time-consuming. Smaller companies can be nimbler in their approach and can bring on strategic partners, and third parties, that also understand these challenges and effectively help them direct the trajectory of their slingshot.
Whether you are building data analytic tools internally, using a third party, or a combination of both, there are important considerations and best practices that will deliver the business value you expect.
Check out our Organizational Readiness Checklist for a list of key steps to take when developing a strategy to join the big data revolution.
ABOUT THE AUTHOR:
Kirstin Marr, CMO of Valen Analytics, has a passion for building companies that invent leading-edge technologies to improve customers’ lives and solve the inefficiencies that exist in traditional marketplaces. As the chief brand advocate for Valen Analytics, she helps pave the way for Valen’s clients to lead the innovation initiatives required to compete in today’s marketplace. Before Valen, she ran business to business marketing for internet technology pioneer and market leader, ServiceMagic.com (now HomeAdvisor).
Kirstin has a long-standing commitment to philanthropy and community leadership. Most recently, Kirstin is leading the Insurance Careers Movement coalition, a grassroots initiative of more than 850 insurance organizations raising awareness of what insurance has to offer young professionals. She has been involved in several non-profits focused on Science, Technology, Engineering and Mathematics (STEM) education, among other non-profit causes.