IMPLICATIONS FOR BIG DATA AND ANALYTICS ON UNDERWRITING PRACTICES IN INSURANCE SECTOR

Abstract

Purpose: Many businesses' approaches to data management have been revolutionized as a result of the advent of big data analytics. These days, companies are harnessing the power of the insights offered by big data in order to instantly establish more information about their customers and the ways in which they conduct business. The goal of this research is to analyze the implications for Big Data and analytics on underwriting practices in insurance sector.   Methodology: This was accomplished through the use of a desktop literature review. The use of Google Scholar was utilized in order to locate seminal references and journal articles that were pertinent to the study. Papers that were published no more than ten years prior were required to meet the inclusion criteria.   Findings: According to the findings of the study, top insurers' underwriting was significantly impacted by the digitization of their claims processes, which made use of big data and analytics. In this paper, the beneficial role of adopting technologies and tools of big data has been justified. These technologies and tools make it possible to develop powerful new business models, which, in turn, make it possible for the role of insurance to transition from "understand and protect" to "predict and prevent." Unique contribution to theory, practice and policy: According to the findings of the study, various aspects of building up digital insurance control mechanisms that assist in maintaining the data integrity of underwriting processes should be implemented. When such advanced security frameworks are implemented, data integrity can be assured, and instances of fraud losses can be significantly reduced. In addition to this, there is a requirement for need-based training to be provided to underwriters regarding the implementation of digital management systems. Moreover, insurance companies should take advantage of the opportunities presented by technology in order to provide underwriters with an early warning of any potentially fraudulent activities