Insurance Moneyball – Winning in a New Age of Insurance
Insurers have been masters of data for centuries. But the digital age has ushered in dramatic changes in the types and volumes of data available as well as the tools and techniques to extract insight and real business value from that data.
Once the leaders in data-driven decisions, many insurers now find themselves behind the curve. They are aware of the promise and potential of these advances, but stuck in their traditional methods made up of silos of internal data and dated analytic techniques suitable for limited, repeated decisions but not capable of making new discoveries, optimizing business decisions or uncovering strategic opportunities.
In many ways, it is similar to the now famous story of the Oakland A’s in the book Moneyball: The Art of Winning an Unfair Game by Michael Lewis. Similar to insurers stuck in centuries-old business assumptions, Moneyball shows that the collective wisdom of baseball insiders, including players, managers, coaches, scouts and the executive office was subjective, flawed and did not keep up with a 21st century reality. Traditional data analytics (statistics in baseball terms) such as batting average, runs batted in and stolen bases were used to assess a player’s value and potential, and influenced baseball teams’ investments in and acquisition of players.
Tara Dilzer Alexander
Director, Marketing Communications and Creative Services