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22nd July 2012

ACORD sponsored survey looks at the growing importance of analytics

ACORD has announced the completion of a landmark research study on data and analytics in insurance, conducted by Strategy Meets Action (SMA). ACORD members in North America responded to a survey investigating insurers' priorities and plans for leveraging data and analytics for competitive advantage that included the future role of standards. The study brings clarity to the variety of analytics approaches and identifies how each type of analytics applies to the insurance industry.
"Insurers are investing in analytics," according to SMA Partner Mark Breading, "with the survey showing that North American insurers spend about 9% of their IT budgets on data and analytics. What is even more interesting is that business units outside of IT are spending approximately the same amount. All together this represents almost $10bn in spending each year."
In addition, three-quarters of insurers plan to increase spending on analytics. A significant percentage of the survey participants are able to identified specific game-changing opportunities (such as pricing and fraud) for applying Big Data approaches.
Survey respondents identified the top business and IT benefits of data standards and industry frameworks in the new age of analytics. The top ranked benefits include promoting consistency for process management, enabling consistent definitions for application strategies, and providing a single reference model to bridge the Business/IT gap.
"ACORD has been developing the ACORD Framework for over five years in response to our members and the insurance industry's needs for more precise data management and data consistency. I believe the Framework models coupled with the existing data standards and standardized forms are crucial to the ever increasing needs of the industry for more detailed analytics and data quality. Without standards, it will become more and more challenging for insurers to wade through the mountains of data needed to do business," said Shane McCullough, Chief Enterprise Architect, ACORD.
More insights from the study on the current and future role of standards and frameworks are available at www.acord.org.
Study results will be presented in a webinar hosted by ACORD on 25th July. For more information about this event and to register, visit www.acord.org/knowledge. For more information regarding the data and analytics research study, contact SMA Partner, Mark Breading at mbreading@strategymeetsaction.com.