Survey shows insurance companies rely on data analytics

New survey shows insurance companies rely on data analytics

Banks and insurance companies are more digital-savvy than many critics claim but still needs to invest more in data analytics by a new survey made by Bitkom Research on behalf of Tata Consultancy.

The study shows that cloud computing and data analytics is used by the majority of banks and insurance companies, but some topics like artificial intelligence are still not quite popular.

Digitization: Check!

On the other hand, 80% of insurance companies and banks are open to digitization the digitization and this is 11 percent higher than the same survey from 2017. Back then, these institutions were not top contenders, but now they are.

The use of new technologies also increased remarkably: 82% use cloud computing, 47% use Big Data analytics. And their investmens plans also support this. 61% of institutes want to invest more in software for data analysis, which is 34 percent higher to the study from two years ago.

Survey shows that insurance companies want to invest in data analytics

But when it comes to AI, only 8% of insurance companies and banks benefit from the current tech. As an interesting contrast, they are pioneers in blockchain, 12% of them use the technology. Two years ago it was only 2%. Looking at an average of all industries, only 5% of companies use it. This shows that despite the big attention, blockchain is still an outsider among digital technologies.

And everybody seems self-confident when it comes to assessing own digital maturity: The average is 5.9 on a scale of 1 to 10, which makes the financial sector the second highest (average is 5.5). The institutes give themselves good marks especially in finance and administration (6.1) and customer service (5.8).

Data scientists jobs tripled

With new tech emerging and coming into use, the need for experts also increases. Data scientist jobs are created in 17% of insurance companies and banks. This was 5% in 2017 and the demand continues, 14% of them want to hire data analysts. When asked about the skills required for digital transformation, nine out of ten respondents (89 percent) name data analysis and interpretation.

The survey which proves that data analytics is a must for future in fintech was made with 953 companies with 100 or more employees, including 97 banks and insurance companies. The interviews were carried out with managers who are responsible for digitization in their company. These include managing directors and board members as well as decision-makers from the areas of digital technologies, information technology, operational business and finance.