Insurers Must Prepare For Big Data's Impact On ERM
Mo Data stashed this in Big Data in Insurance
Risk management is an area of insurance that has led the way with rapid processing of large amounts of data, but generally from restricted sources, most often data derived from internal systems.
Most insurers, are continuing to struggle with existing data environments.
Looking to external data, insurers can more closely quantify certain market risks by quantifying sentiment risk through social media scanning, hone operational risk models using environmental data and overall reduce the gap between known and unknown variables in the ERM equation
“Increased focus on risk management also increases the attention from top-level management toward how data quality and analysis can contribute to business advantage,” he says. “The results of the risk calculations and aggregations give us a better foundation for strategic decisions.”
“When market conditions deteriorate quickly, the litmus test will be whether you can assemble data, feed it into models and deliver output about the fast-changing environment,” Spinard says. “Increasingly that will need to be a matter of getting it done today, not in two weeks.”