Insights ? Think tank 84 Asia Insurance Review Ju ly 2016 B ig Data is disruptive across the insurance value chain and insurers who master the use of Big Data will gain a significant competitive advantage through, for example, better client understanding, contact, risk profiling and claims management. As a result the risk profile of insurers is changing dramatically. Other industries such as technology players, car manufacturers and utilities providers, profit from deeper client relationships and better control of the ecosystems, mainly through client understanding and contact, whilst incumbent insurers are marginalised as providers of capital to shrinking risk pools. Multiple catalysts for Big Data and ecosystem growth Despite some key hurdles such as privacy concerns and the required high invest - ments in technology, there are four main catalysts that will accelerate the trend towards Big Data and ecosystem growth according to BCG. ? Technology adoption: smartphone adoption is growing 46% annually to an expected 2.3 billion by 2018. Device connectivity is growing at an exponential rate ? by 2020, expect that 80-100% of all shipped cars will have embedded con - n e c t i v i t y. ? Internet of Things: nearly everything in our cars, homes and bodies (health related) could potentially be monitored, stored, analysed and reviewed online. Many technology giants have launched B2C platforms that can manage these connected devices. ? Consumer expectations: Approximately 50% of consumers would definitely switch or consider switching to new innovative insurance models, based on consumer research. Big Data, Big Impact What are the trends in Big Data and analy tics in the insurance industry? What are the threats and opportunities for insurers? What is the impact on insurers? risk management? These questions were addressed at The Geneva Association?s 13th Annual Roundtable of Chief Risk Officers in Copenhagen in April 2016 that analysed how Big Data and ecosystems are a disruptive force that could threaten insurance incumbents throughout the value chain. Messrs Nic Gordon and Ofir Eyal of BCG Big Data elaborate. ThinkTank-July2016.indd 8423/6/2016 10:58:05 AM
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