Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • August 2018
08

Insurers to invest $2.4bn in big data this year

Open-access content Monday 6th August 2018 — updated 5.50pm, Wednesday 29th April 2020

The global insurance industry is forecast to spend approximately $2.4bn (£1.9bn) on big data in 2018 as firms increasingly look to improve claims processing and fraud detection.

2


That is according to a new report from research and consultancy firm SNS Telecom & IT, which also predicts that big data investments will hit nearly $3.6bn by the end of 2021.

"Led by a plethora of business opportunities for insurers, these investments are expected to grow at a CAGR of approximately 14% over the next three years," the company said.

Based on feedback from insurers worldwide, it was found that big data has led to a more than 30% increase in access to insurance services, and cut policy administration work by half.

It has also improved fraud detection rates by 60%, resulted in large loss claims predictions with nearly 80% accuracy, and led to cost savings in claims management of up to 70%. 

In addition, big data has accelerated processing of non-emergency claims by a staggering 90%, and is playing a "pivotal role" in facilitating the adoption of on-demand insurance models.

"Particularly in auto, life and health insurance, as well as the insurance of new and underinsured risks such as cyber crime," SNS Telecom & IT said.

"Amid the proliferation of real-time and historical data from sources such as connected devices, web, social media, and transactional applications, big data is rapidly gaining traction."

This comes after a survey of executives by software provider AdvantageGo found that upgrading technology is the number one priority for insurance companies across the world.

It was also found that three-quarters are involved in data analytics and big data projects, with more than half looking at machine learning, artificial intelligence and blockchain.

"Whether companies want to be ahead of the game or are simply anxious about being left behind, all sectors of the market are taking InsurTech seriously," AdvantageGo executive vice-president, Adrian Morgan, said. 


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession



This article appeared in our August 2018 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

World's second-largest reinsurer cuts ties with coal business

Munich Re has announced today that it will end insurance coverage for new coal-fired power plants in industrial countries following months of pressure from environmental groups.
Monday 6th August 2018
Open-access content
2

Insurance firms face fines for climate change reporting failures

Three British insurance companies have been reported to the Financial Conduct Authority (FCA) for failing to disclose climate change risks in their annual reports.
Tuesday 7th August 2018
Open-access content
2

UK life expectancy improvements among worst in developed world

Life expectancy improvements in the UK were among the worst recorded across the developed world between 2011 and 2016, new official figures have revealed.
Wednesday 8th August 2018
Open-access content
2

Longevity risk transfers hit record-breaking highs

The first six months of this year saw an unprecedented £21.8bn in longevity risk transfers undertaken for UK pensions plans, shattering the £11.8bn record set in the first half of 2014.
Thursday 9th August 2018
Open-access content
2

Service sector growth grinds to three-month low

The UK’s services sector expanded slower last month than at any point since April, with employment growth at is weakest in almost two years, new research has found.
Friday 3rd August 2018
Open-access content
2

FTSE 350 pension deficit more than halves in 2018

The UK’s 350 largest listed companies have seen their pension schemes’ accounting deficits fall by more than half so far this year, analysis from consultancy firm Mercer shows.
Friday 3rd August 2018
Open-access content
Filed in
08
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ