Advanced analytics is gaining significant traction, particularly in the motor business. Many insurers are leveraging these tools to refine risk premium modeling and better understand customer elasticity and demand. This has led to improved loss ratios, portfolio management, and resource efficiency. However, the application of advanced analytics in claims management is less advanced, indicating a gap in the integration across different business areas.
Despite the growing adoption, several challenges remain. The most significant barrier is the shortage of skilled professionals, with 67% of respondents citing this as a major issue. Internal infrastructure limitations and competing priorities leading to lower investment in analytics sophistication are also notable hurdles. Executive buy-in and internal acceptance are additional challenges, with 24% of respondents citing these as barriers.
Looking ahead, the integration of AI into analytics is advancing, with 49% of insurers incorporating AI into their operations. However, extending the use of analytics to other critical areas such as claims, marketing, and distribution remains a work in progress. The report suggests that insurers should focus on building foundational capabilities, investing in talent development, and promoting cross-functional understanding to fully unlock the potential of advanced analytics.
