Data is "the new oil" for insurers

Prevention-led insurance products will be the future market driver in India, instead of protection-led policies, according to .Mr Peter Manchester, EMEIA Financial Services Office Insurance Leader at the international professional services firm, EY.

He told Moneycontrol that adequate mining of data will enable insurers to offer such products with a competitive advantage.

"Insurers have woken up to the fact that data is the new oil. We are working on data analytics in two areas, claims and pricing. The idea is to move away from a traditional optimisation model to a data-rich environment managed by data scientists," he said.

He added that insurance companies are investing in areas to optimise pricing by using data effectively.

“We work around predictive analysis and artificial intelligence (AI) in the area of insurance claims. We are building a technology layer with AI that can look into any claim and give directions on the next set of actions that can be taken by the claims handler," he added.