The majority (91%) of insurance industry executives have said big data/analytics will be a main source of competitive differentiation for insurers, according to a poll.
The survey by Infoline and PwC also showed that over 90% of respondents think big data will be the main driver in the transformation of insurance companies' business model.
Over two-fifths (44%) agreed that big data is at the heart of informing and shaping strategy, highlighting the fundamental shift in how business is being done.
Jonathan Howe, UK insurance leader at PwC, said: "Big data and analytics are high on the agendas of nearly all insurance companies these days, and our poll confirms that the majority of insurers appreciate just how fundamental big data is to shaping their business and staying ahead of competition."
Areas where big data will have the biggest impact are cited as customer insight (55%), and underwriting effectiveness (24%). 15% said that pricing optimisation will be affected the most.
Michael Spiteri, insurance analytics partner, said: "It's clear that in order to be effective in gaining competitive advantage from big data insurers need to be prepared to make changes across their organisation and make this a core part of their operation, as opposed to a one-off exercise. There is a mandate for action and this can't be left for another day or another budget cycle.
"When this is combined with a clear framework focused on enabling and embedding analytics, insurers can create an insight driven business model that can, in turn, create sustainable and repeatable business advantage."
