Three quarters of insurers plan to increase spending on analytics, according to a new ACORD research study, conducted by Strategy Meets Action (SMA).
North American members of ACORD, a standards development organization serving the insurance industry, responded to a survey investigating insurers’ priorities and plans for leveraging data and analytics for competitive advantage that included the future role of standards.
“Insurers are investing in analytics,” SMA Partner Mark Breading said in a release, “with the survey showing that North American insurers spend about 9% of their IT budgets on data and analytics. What is even more interesting is that business units outside of IT are spending approximately the same amount. All together this represents almost $10 Billion in spending each year.”
A significant percentage of the survey participants are able to identify specific game-changing opportunities (such as pricing and fraud) for applying Big Data approaches.
Survey respondents identified the top business and IT benefits of data standards and industry frameworks in the new age of analytics.
The top ranked benefits include promoting consistency for process management, enabling consistent definitions for application strategies, and providing a single reference model to bridge the Business/IT gap.
About Strategy Meets Action
Strategy Meets Action (SMA) was formed to deliver the insights, information, and perspectives that insurers need to bring clarity to decisions and priorities around IT investments, and to help IT solution providers build offerings and shape their market messages to align to the needs of the industry. www.strategymeetsaction.com