“From the Executive summary
- “Data processing has historically been at the very core of the business of insurance undertakings, which is rooted
strongly in data-led statistical analysis. Data has always been collected and processed to inform underwriting
decisions, price policies, settle claims and prevent fraud.
There has long been a pursuit of more granular datasets and predictive models, such that the relevance of Big Data Analytics (BDA) for the sector is no surprise….”
- “..Traditional data sources such as demographic data or exposure data are increasingly combined (not replaced) with new sources like online media data or telematics data, providing greater granularity and frequency of information about consumer’s characteristics, behaviour and lifestyles…”
- “…The use of data outsourced from third-party data vendors and their corresponding algorithms used to calculate credit scores, driving scores, claims scores, etc. is relatively extended and this information can be used in technical models…”
- “…BDA enables the development of new rating factors, leading to smaller risk pools and a larger number of them. Most rating factors have a causal link while others are perceived as being a proxy for other risk factors or wealth / price elasticity of demand.”