Big data analytics for insurance

Abstract

Availability of large amount of data from different data sources and implementation of Big Data Analytics (BDA) in insurance industry transformed the insurance product lifecycle. The rapid change is evident throughout the whole insurance product lifecycle: from the product design, underwriting and pricing, their marketing and distribution, through to claims processing and the ongoing management of customer relationships. The adoption of new technologies, especially for data collection and advanced analysis, represents a significant competitive advantage in the insurance market. Therefore, in this paper the impact of the BDA usage on insurance sector is analysed andpotential benefits and risks associated with the use of BDA are presented.