Most insurers cannot analyse free form text in claims notification forms! Typically 80% of an insurer's data is inaccessible and therefore not included in any MI/BI.
Big Data? - All the unstructured and semi-structured data stored but not analysed.
Free form text in claims notification forms is a valuable treasure trove of insight to uncover and prevent fraud. It yields content to a claim for personal injury. The where, when, how, what and with who.
That a protective use of big data analytics- avoiding fraud. There are positive uses to match the right product at the right time to a custometrs needs. A connected customer with connected:-
This is where joining external and internal data makes such a difference. Is the claim for storm damage relevant- it is easy to automatically check weather conditions at that property on that day and score the claim accordingly. Flag suspicious claims and validate bona fide claims
This does offer a major disruptive opportunity to big data practitioners like Google and Amazon. They have the proven ability to not only analyse big data but also add context.
Adding Context was one a disruptive opportunity Uber exploited to take business from traditional taxi companies. The context of location- where a taxi is, where a traveller is and joining the two.
Context will add disruptive insights to enterprises that do wish to compete in the insurance market. Could this be Amazon, Google or Alibaba?
Avoid that threat by being as good as these disruptive exploiters of technology. Get a 360 Insight of you business and market place
“Big data may completely change the model of the business of insurance, particularly on the retail side,” said Alessandro De Felice, chief risk officer for Prysmian and president of ANRA, the Italian risk management and corporate insurance association. “This is associated with the number of apps that provide data on the behavior of the insured person.” But insurers must also be careful about the disruption that Mountain View, California-based Google can cause with the volume of data that it collects and how it can use that data, because the technology giant “could be an insurance company,” he said. The use of big data in the insurance industry has many positive implications, but it also will be a challenge to implement in the industry because of regulation, Ms. Paduano said.