The vast majority of insurance companies lack the infrastructure to mobilize around a true prescriptive analytics capability, and small- and medium-sized insurers are especially at risk, in terms of leveraging data insights into a competitive advantage. Small- and medium-sized insurers are constrained by the following key resource categories:
- Access and ability to manage experienced data scientists
- Ability to acquire or develop data visualization, machine learning and artificial intelligence capability
- Experience and staff to manage extensive and complex data partnerships
- Access to modern core insurance systems and data and analytics technology to leverage product innovation insights and new customer interactions
Changing customer behaviors, non-traditional competition and internal operational constraints are putting many traditional insurance companies—especially the smaller ones—at risk from a retention and growth perspective. The marketplace drivers create several pain points or constraints for small and medium size insurers, such as can be seen in the following graphic:
This is excerpted from a research report from Majesco. To read the full report, click here.