Every day, more than 2.5 quintillion bytes of data are created, and that pace is only accelerating. Big data, combined with the increased usage of machine learning algorithms, allows the life insurance industry to model the surrounding world much more effectively than in the past. Insurers can better understand underwriting risks, improve customer service, and lower costs. Better data can also improve the health of customers. In this report, we explore in detail what kind of data can be used to achieve these goals, and its limitations.
Potential data sources for life insurance AI modelling
As traditional insurers face competition from startups, they are well positioned to harness vast amounts of new data with the help of their actuarial teams.