Benefits from scale tied to greater technology use and

Posted in: Uncategorized- Apr 16, 2018 Comments Off on Benefits from scale tied to greater technology use and

Insurance Sector’s Big Data Transformation Just Beginning

(The following statement was released by the rating agency) Link to Fitch Ratings’ Report: Disruptive Technology: Insurance here CHICAGO/LONDON, March 16 (Fitch) Harnessing “big data” is proving essential for insurers seeking to maintain and increase market Canada Goose online share and profitability, Fitch Ratings says. Those that fail to keep pace risk being marginalised or coming under pressure to consolidate. Many elements of the insurance business could be transformed, such as distribution, risk selection, pricing and claims management. The insurance industry’s core functions historically used large volumes of data to assess and price risk and predict future claims experience. But insurers have been slower than companies in other sectors to adapt canadian goose jacket their canada goose outlet toronto factory business models to rapid technological change. Expansion in computer processing capabilities, data storage capacity, the proliferation of internet use and the development of “smart” devices has created new opportunities for insurers canada goose coats on sale to access and process information. The gap is starting to close now that insurers have realised the potential of canada goose deals modern big data, but it has Canada Goose Online helped leave the door ajar for outside technology disruptors, which we believe will play a meaningful role as either direct competitors or technology partners to the major insurers. The most obvious Canada Goose Coats On Sale potential for big data is in Canada Goose Outlet improving risk analysis and pricing. Non life insurers have made the most progress so far, using canada goose outlet store locations data analytics and predictive models for greater price segmentation and optimising claims management. Significant opportunities in auto insurance lie with telematics technology that monitors driving behaviour and generate a plethora canada goose clearance of data to assess driver safety. Life insurers see canada goose replica similar potential in wearable cheap Canada Goose devices that can help assess a customer’s lifestyle and health, enabling more accurate pricing. The expansion of big data analytics creates new challenges. The collection and analysis of sensitive personal data can generate privacy concerns. Data privacy laws and regulations have lagged behind rapid technological advancement and may lead to restrictions on data use and the breadth of data that can be collected as they catch up. More accurate pricing can also mean greater differentiation for higher risk customers, which could be perceived as discriminatory. This could lead to regulatory intervention to limit the use of big data, or the Canada Goose Parka pricing impact of its use in some sensitive product segments. But we expect early movers to gain a significant advantage, with the reward on technology investment increased by scale and network benefits. Those who reach critical mass first can pick the best risks and achieve operational cost efficiencies compared to the laggards. Smaller insurers that lack the resources to invest are most at risk. Benefits from scale tied to greater technology use and investment will also contribute to further M activity in the sector. Contact: James Auden Managing Director Insurance +1 312 368 3146 Fitch Ratings, Inc. 70 W. Madison St. The above article originally appeared as a post on the Fitch Wire credit market commentary page. All opinions expressed are those of Fitch Ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING 2018 canada goose outlet THIS LINK: here. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES Canada Goose sale ARE AVAILABLE FROM THIS SITE AT ALL TIMES. 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