Product development and marketing are the departments slated to receive the largest analytics investments, and 83 percent of P&C insurers said they are planning to increase spending on data and analytics projects, according to "Data and Analytics in Insurance: P&C Plans and Priorities for 2013 and Beyond," a recent survey from Strategy Meets Action.
Through analytics, P&C insurers are most interested in identifying customer renewal and retention triggers, SMA found. Commercial and personal lines insurers had similar responses. However, when accounting for size, smaller insurers were more interested in the renewal/retention triggers and less interested in cross-sell and up-sell opportunities.
Similarly, for operational insights gleaned from data and analytics, the difference between commercial and personal lines priorities was marginal, but larger insurers prioritize productivity measurements most, and they're significantly more interested in sales/premium trends than smaller insurers, which prioritize loss trends and agent performance.
The obstacles P&C insurers face in attaining these insights vary largely by size as well, but data quality, completeness and lack of overall priortity or funding did rank high on the list.
