Alexis Networks

Alexis Networks
Understanding Anomaly Detection

Wednesday, July 8, 2020

How insurers can use big data to manage the COVID-19 pandemic

Caught between higher demand and tightening supply, insurers are looking to technology to compute adequate rates and come up with new types of coverage. 

To take advantage of big data technology, insurance managers and underwriters need to first understand how to leverage its power in supporting their specific needs. (Bigstock/ALM Media archives)

Insurers are stuck between a rock and a hard place.

The recent COVID-19 pandemic has forced much of the world to grind to a halt. As companies struggle to manage the impacts on their supply chains and bottom line, greater pressure is placed on insurers to support their clients while also mitigating the downside for their own businesses.

On one end, the needs of insureds are higher. Business operations are global and more complex; all the while, clients expect more bespoke service and support.

At the same time, markets are hardening due to catastrophe loss experience and higher reinsurance costs. Even before the novel coronavirus outbreak, insurers were struggling to keep up with increased severity, frequency, and uncertainty of natural catastrophes and other emerging risks. 

Caught between higher demands and tightening supply, insurers have begun looking to next-generation technologies to compute adequate rates and come up with new types of coverage such as parametric insurance while also ensuring their own underwriting profitability. 

Big data is one area drawing greater attention, and big data analytics can improve strategic decision making. Yet, it isn’t as simple as collecting vast amounts of information. To take advantage of big data technology, insurance managers and underwriters need to first understand how to leverage its power in supporting their specific needs. 

Personalize and optimize

According to a 2019 Deloitte survey, only 40% of organizations utilize big data and analytics despite more than two-thirds of responders believe the emerging tech would dramatically increase operational efficiency and enhance risk analysis and detection. 

Big data analytics allows large and small insurers to see the big picture and enhance underwriting capabilities by providing a faster and deeper understanding of risk exposure. By incorporating data from internal and external sources, as well as real-time monitoring of catastrophic impacts, infection rates and prevention methods, insurers are able to compute adequate premium rates for their clients and allow real-time risk assurance. 

As P&C premium rates continue to rise, case-by-case analysis adds a valuable layer during renewal conversation with clients who have unique expectations and demands. Insurers can understand their clients’ loss history and status of current claims, differentiate their risk against their total portfolio, and develop a high-quality underwriting submission tailored to industry trends and challenges. 

Close the gap

Insurers are facing pressures from all sides to close the protection gap between insureds and economic losses. This gap has continued to widen as the scale of serious natural catastrophes have increased, and black swan events like COVID-19 have emerged, challenging us to react to an unprecedented situation and to understand the potential impacts on the various dimensions: sanitary, economic and financial. 

Truly understanding current risks is vital to narrow the gap, and as data becomes increasingly open and transparent, insurers that use technologies to leverage that information can identify opportunities and mitigate damages. 

A critical benefit of big data analytics is in improving the accuracy of loss projections and producing real-time insights of events as they occur. Climate risk is constantly evolving, and past observations are not necessarily representative of the potential damages of today’s risk. Modern tools and platforms open up possibilities to maneuver through the complexity that defines the new world of insurance, especially during a pandemic when information is coming from a multitude of sources. 

Accurate and timely projects have cascading effects and material impacts on reserves, renewal premiums and T&Cs. Investors, ratings agencies and reinsurers look to risk resilience and strong mitigation processes. Therefore, insurers that invest in big data analytics tools can showcase their own ability to pay future claims and demonstrate the capacity to responsibly underwrite risk. 

Halt the DRIP

The number of companies using big data analytics is projected to more than double in the coming years. Staying ahead of the curve is absolutely essential for insurers to ensure longevity. 

As the author and business management guru Robert Waterman observed 35 years ago, companies are “data-rich and information poor.” In spite of (or as a result of) having more access to data, business leaders still struggle with incorporating data into their business strategies. Top management can often rely excessively on experience over data due to frustrating data silos, poor integrations with existing systems, or outdated technologies. 

The “Data-Rich, Information Poor” (DRIP) status must change as the insurance world heads into the new decade. More attention should be placed in making sense of the immense amount of public and private data insurers have access to, and insurance companies that fall behind on innovation will inevitably see their own demise. Companies that halt the DRIP and make financial, social, and cultural investments to become information-rich will be capable of adapting and taking advantage of the new normal. 

Moving forward

In a global and increasingly interconnected world, risks do not spread in isolation; their speed and impact are magnified because they are intertwined. This trend will not reverse, so it is on all those in the insurance industry to adapt. We already fear the ripple effects of the current pandemic on business continuity, supply chains, and public health. As the world continues to face greater levels of risk, big data analytics technology is, and forever will be, crucial in helping insurance companies gain actionable insights as the volume of external risk data explodes; in monitoring and mitigating large-scale events as they unfold; and developing business intelligence in real-time on emerging risks. 


  1. El Yucateco, Tryndale, CA | Mapyro
    El Yucateco, Tryndale, 원주 출장안마 CA. 82801 S S Rancho Drive, El Yucateco, 포천 출장안마 CA, 82801, USA. 광명 출장마사지 Open since: 1999. Sort by: 김해 출장샵 Size. Sort by: 대전광역 출장샵 Size. Sort by

  2. The materials sm카지노 on this site in all probability not|will not be} reproduced, distributed, transmitted, cached or in any other case used, besides with the prior written permission of Condé Nast. How many TikToks have you watched of individuals peeling off their gunky hydrocolloid patches (aka. pimple patches)? Whether your giftee is acne-prone or just has a morbid fascination with issues which are be} kind of gross, a pack of Hydro Seal Hydrocolloid Patches can serve as a sensible, reasonably priced, and entertaining present. "What's your skin-care routine?" That's a query you'll be fielding lots when sporting CoverGirl's Skin Milk, which is type of like a hybrid between a tinted moisturizer and a light-coverage basis. Its subtle pigments create a sheer veil of colour over the skin whereas the aloe vera-packed method keeps it soothed as could be.

  3. At the same time, they cannot prosecute foreign casino operators and solely block their websites. Players in these nations cannot be punished and might gamble at any web site they will entry. The share is labored out by calculating every possible spin on the digital reels, which are all equally likely, and evaluating money in vs. money out to make every of these spins. The casino has enough of a bankroll to experience the variance out, and that's how they profit.

  4. Live dealers, who're both skilled croupiers or specifically skilled TV hosts, run the 메리트카지노 sport and sustain friendly communication with the gamers. The games are available any time, and could be played by several of} users or privately. Experienced gamers will respect the standard of the visuals and the professionalism of the dealers.

  5. In the background, each slot software is constantly generating random numbers due to the random number turbines . Each number offers a special consequence on the reels with every spin. When the reels stop spinning, the slot game works out the worth of the spin based on the numbers and figures, and notifies the gamer.


How insurers can use big data to manage the COVID-19 pandemic

Caught between higher demand and tightening supply, insurers are looking to technology to compute adequate rates and come up with new types ...