At first glance, insurance sales and big data may seem to be at opposite ends of the spectrum. The former is a personal business, built on established trust and mutual understanding. The other, when applied improperly, adds up to nothing more than a bunch of numbers.
Customer Relationship Management activities have grown increasingly sophisticated, but remain focused on the capture and use of internal data, or data that is within a closed sales and service process. When the term “big data” was first introduced to the insurance world, many thought that it had to do with the massive amounts of data housed in legacy insurance applications. To be sure, there was and still is a lot of valuable data in old systems. However, “big data” is an expansive term that relates to all of the data that is created and available external to and outside the firewall of insurance companies. Think of all the financial, legal, and personal information that is “out there” in various systems that is readily available. When viewed in this light, there is a plethora of data and information that the savvy insurance marketer, agent, advisor, broker, or carrier has available to build business. Throw in analytics and it makes the whole topic of big data even more interesting.