3 Key Steps To Next-Generation Analytics

Insurers must keep pace with the constantly evolving risk environment. That means keeping pace with climate change and growing catastrophic event losses; the explosive growth of intangible assets and the challenge of valuing those assets; and the increasing exposure of their portfolio to cyber risks.

Despite changing and challenging conditions, some carriers thrive and prosper -- while others stagnate.

Almost any seasoned insurance executive can tell you a story or two about how a once-strong carrier devolved into obsolescence. The sum of the story is typically that those that wish to prosper must find new opportunities in an evolving environment -- and new ways to innovate.

The idea that innovators thrive is based on more than just anecdotal evidence. There are detailed analyses that show how and why innovators thrive in the insurance industry.

According to one of these, a recent study by the consulting firm McKinsey, ‘insurance market shapers,’ those that boldly innovate, create significantly more economic value than their peers. According to the report, on average, insurance ‘market shapers,’ innovators in the top 20% of the market, create profits up to 20 times the industry average.