Data Sharing Models in the Insurance Industry
There is a drive for efficiency in insurance markets, accompanied and enabled by changes in the way that data is captured, processed, stored and shared. Our recent survey of industry experts expects transformation to occur in 3-5 years but the panel of experts do not perceive an immediate threat over the next 12 months. This is a classic example of the innovator’s dilemma for established firms in markets that are in transition, where clear benefits can be seen, but change is risky and the current markets are still profitable.
In this article on the Willis Research Network, we explore how data sharing is changing across the insurance value chain, introduce four data sharing models and market scenarios, and identify the imperative strategic choices facing the insurance industry.