Firms not using data risk becoming ‘siloed’ from industry

Insurance firms that “bury their heads in the sand” when it comes to utilising data are at risk of becoming “siloed” from the industry.

That was according to Broker Insights chief executive Fraser Edmond, who told Insurance Times that the “biggest trend” his firm had observed in recent times was brokers and insurers increasingly turning to data to try and gain a competitive advantage.

Edmond’s comments come at a time when data has started to transform the way the industry analyses the risks it covers.

Last month, Earnix UK chief executive Robin Gilthorpe highlighted that insurers which made “strategic changes” to better analyse data would end up “thriving in a dynamic environment”.

And Edmond felt that such a shift meant firms needed to focus on embedding data-led solutions into daily operations.

“[Businesses] that delay their uptake of data solutions, or worse still, bury their heads in the sand, risk becoming increasingly disconnected, siloed and [falling] behind their more-technologically advanced peers,” he added.

“Data-led decision making is no longer the preserve of those at the forefront of the innovation adoption life cycle.

“Technology has made data more accessible and the market has responded by further embedding these data-led processes into their day-to-day operations.

“Technology solutions enable data to be aggregated and [artificial intelligence (AI)] and machine learning can be used to drive further advancements.”

Platform

Edmond made the comments after Broker Insights revealed last week (16 November 2023) that members will upload over £5bn of annual gross written premium (GWP) to its platform this year.

The earnings are a result of brokers and networks joining its Vision platform, which compiles and standardises UK commercial insurance market data.

Edmond estimated that brokers using its platform could save around 30% of the time spent chasing proposals by “focusing their activity on markets with an appetite for each risk”.

“By overlaying insurers’ appetites with brokers’ client renewal data, our Vision platform helps to connect the two parties via data,” he added.