A Heat Map for Insurers’ Use of Consumer Data: Perspectives on Current and Future Data
Celent has released a new report titled A Heat Map for Insurers’ Use of Consumer Data: Perspectives on Current and Future Data. The report was written by Nicolas Michellod, a senior analyst with Celent's Insurance practice.
The data environment insurers are facing today makes their business more complex. More than the question about how to collect consumer data, there is the crucial question of whether it is worth leveraging private consumer data they can capture through new collection channels including mobile devices and apps, connected objects, social networks, and other Internet platforms.
This report looks at factors that we think insurers should address when evaluating the pros and cons to invest in technologies allowing them to collect, manage, and use private consumer data. Insurers can analyse the factors at play when investing in data-related technologies. To do so, Celent recommends that they use a data heat map to assess internal and external factors along four dimensions including business operation, data access and supply, and the regulatory and sociocultural environments. We also propose an evaluation methodology to help insurers score the factors at play and identify suitable environments to launch their data initiatives.
“While it seems obvious that there is value to be derived from this data, there are constraints, risks, threats, and barriers insurers have to be aware of. The question of the value of private consumer data found on social networks and the Internet is complex,” Michellod commented.
“European insurers believe that external data sources have high value for their business, but it seems that they lag their US peers in terms of using data from social networks and Internet sources,” he added.