Insurers Turn Big Data into Big Opportunities

Categories: Success Stories

The rapid rise of digital, social media, handheld devices, sensors in connected cars and wearables have been a game changer for insurers – requiring them to rethink their business model and IT infrastructures.  Leading insurers of all types and sizes are increasingly embracing big data analytics and Apache Hadoop to drive growth and innovation.

According to various studies done by Deloitte, Accenture and other leading authorities, 82 percent of insurance executives cite data and analytics as a top priority for their organizations while 50 percent indicate that analytics implementations will make use of events data streams generated by instrumented machines, applications and or individuals.

From Data Silos to Data Consolidation

Fragmented systems, outdated storage technologies and data silos have kept insurers in a gridlock for decades.  Moreover, these systems were not designed to handle the types and volumes of data needed by businesses today.  The emergence of an enterprise data hub (EDH) – Cloudera Enterprise – powered by Hadoop offers a new paradigm to overcome data silos while enabling insurers to leverage existing IT investments. It provides a path forward to creating a centralized big data analytics hub.  For the first time, actuaries, underwriters, fraud specialists and data scientists can tap into vast pools of data that were previously inaccessible.

Key Use Cases for an Enterprise Data Hub (EDH)

At Cloudera, our insurance clients include both large, multi-line carriers with a global footprint as well as mid-tier insurance companies focused on niche markets in their respective geographies. What both types of companies have in common is a corporate culture for innovation. Many are using Cloudera Enterprise across key areas of their business including:

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Proven Results

Following examples provide some insights into how leading insurers are using Cloudera Enterprise:

Allstate – has built a centralized big data analytics hub with Cloudera Enterprise. There are multiple use cases in production today – from risk & underwriting, customer insights (gaining a 360-degree view) to claims fraud and usage-based-insurance. Value: Allstate is able to analyze 80 years’ of historical data across 50 states 75X faster.

Markerstudy – the recipient of Celent’s “model carrier award” for data mastery and analytics, is a privately owned UK-based general insurer that serves 1.75 million customers.  They are an example of a mid-tier insurer that is using Cloudera Enterprise to analyze and model risk, create more granular and precise risk-based pricing, detect claims fraud and gain valuable customer insights by correlating and analyzing data from twelve different internal and external data sources. Value: Overall, the carrier experienced an increase of 120 percent in policy count over an 18-month period. And approximately £5 million reduction in claim costs through better fraud detection and prevention at point-of-quote.

To learn more on how Markerstudy is leveraging Cloudera Enterprise, please join us for an interactive webinar on January 21, 2016 at 11:00am Eastern.  You will have an opportunity to hear and engage with leading industry experts from SAS, Celent, Markerstudy and Cloudera. To register, simply visit us at: Insurers Capitalize on Big Data Analytics.

You can also read more on the different use cases for an EDH by downloading the following white paper:  Insurers Capitalize on Big Data and Hadoop.

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