There was a time when the discovery of fire was the top trend. It was around 1 million years later when the invention of the wheel continued to ensure mankind’s development moved in the right direction.
These days, the gears of invention move much more quickly, with new resources and ways to improve our personal and business lives seemingly created every few days.
The rapid availability and use of data is one of these technology innovations that can alter the way businesses make educated decisions – for the insurance industry, this could be particularly important.
Much like how the wheel allowed large loads to be pulled rather than carried, big data is set to increase the capacity of business information analysis. No longer will companies have to manually trawl through reams of text for the useful piece of information they need; instead, vastly superior and larger quantities of data will be accessible almost instantly.
This is set to pay dividends to the insurance industry, where insurance experts regularly analyse a virtually infinite number of scenarios to provide the best business insurance and personal cover.
Improving business insurance
According to IBM, 20 per cent of data is accessible and constructed in a useable way. This leaves a vast majority of information (80 per cent) unstructured, complicated and non-user-friendly.
Enterprise risk management has a much broader well of knowledge to drink from thanks to big data. Unstructured information is deciphered and business processes have the freedom to run at the pace of the organisation.
This means businesses can get the best deals on their insurance cover, as the depths of their strengths and weaknesses can be analysed at greater speed.
For example, the risks involved for a company when creating a manufacturing insurance policy can take in everything from burglary to machinery breakdown, personal accident and worker compensation cover.
Big data technology is set to improve the deals available for business insurance cover, with insurance brokers able to work on getting the best tailored insurance package for their clients’ circumstances.