April 2021 – Insurers continue to leverage third-party data for analytics augmentation and predictive modeling as well as for validating and cleansing existing data. The marketplace of third-party data providers is complex, with cross-industry providers, specialists, and startups all vying to help insurers.
This report reviews multiple insurance industry use cases for third-party data and examples of insurers that are investing in this area. It also profiles more than 75 data providers that serve insurers.
Key Points and Findings
- Drivers of third-party data usage include AI, customer experience, cost, and regulation. The need for large data sets to train AI and customer buying experience expectations that online retailers set both stand out as relatively new motivators.
- Privacy concerns have made data use transparency critical. Growing state regulations such as New York State’s Cybersecurity Regulation and the California Consumer Privacy Act have increased demand for transparency in how organizations use data and for what purposes.
- Third-party data providers are consolidating, due to vendors’ desire to maximize wallet share. Data vendors are not always integrated into their acquirers, which can mean challenges for insurers consolidating their data purchases for a more efficient procurement experience.
About the Author
Eric Weisburg
Eric Weisburg is a Senior Principal at Datos Insights. His expertise lies in insurance technology, data, and analytics, and distribution, underwriting, and finance. Eric has over 20 years of LAB and P/C insurance industry, consulting, and IT experience. Prior to Datos Insights, Eric served as Managing Vice President of Strategic Initiatives at Tower Group Companies and VP at AIG, where he...
Other Authors
Steven Kaye
Steven Kaye is Head of Knowledge Management at Datos Insights, and lead editor of the firm’s Business and Technology Trends in Insurance series. He has managed a wide range of research projects since joining the firm in 2008. Previously, Steven worked for Accenture as an insurance researcher focused on the U.S. life and property/casualty markets. He also served in both knowledge management...