Due to the rise of digital transactions and new regulatory developments, insurers are handling more data than ever before. To capture the value of this data, it needs to be shared – both internally and externally. However, data sharing is not without risks, such as the privacy risks when sharing personal data. Privacy enhancing technologies (PETs) have emerged as a crucial tool for insurers, allowing them to protect sensitive data while still enabling data sharing. PETs reduce risks and simplify compliance by restricting the use of the data to what is required for the specific purpose. Insurers who want to tap into the benefits of data sharing should experiment with proof of concepts (PoCs), build internal data management capabilities and explore possibilities for collaboration. By following these steps, insurers can capture the value of data while minimising the associated risks.
DATA SHARING IS KEY FOR INSURERS TO IMPROVE THE CUSTOMER EXPERIENCE, RISK MODELS AND FRAUD DETECTION
In today’s digital age, the world is becoming more interconnected, resulting in a surge of digital transactions. This surge is driven by the increased use of emerging technologies such as social media, cloud services and the Internet of Things (IoT). All this data can help to optimise process efficiency, improve products and/or services and fuel training of AI models.
Insurance is traditionally a data-driven industry because it revolves around the ability to evaluate risks and price them accordingly. Due to the rise in internal and external data transactions between different departments, branches, organisations and even ecosystems (e.g. IoT, mobility), insurance companies are noticing an increase in the volume of data they handle. Besides the technological innovations, new regulatory developments like the Data Act and the Open Finance Framework are further driving the rise of digital transactions.