The era of “big data” has arrived in the reinsurance sector, yet many firms insist on taking a customary “wait and see” approach—not only with big data but in-house small data automation as well.
Executive Summary
Reinsurers can't afford to ignore the potential of big data, argues Xuber's Craig Robinson. In this opinion piece, Robinson suggests that new players with third-party investor backing are muscling into the reinsurance business using expertise in data analytics to their advantage. For reinsurers to benefit from data analytics, they first have to solve data migration problems and get the right talent on board, he says.Meanwhile, new market players with significant third-party backing are leveraging their data prowess to impress and lure customers away from established firms.
The evidence is crystal clear: The traditional cautious, risk-averse approach toward progress and success won’t cut it in today’s digital reinsurance marketplace. The reinsurance firms that are still around to tell war stories five years from now will be those that take decisive action to harvest, analyze and leverage more value from their greatest asset—data—to transform it into a finely honed competitive weapon.
