"Which brings us to the crux of the problem: insurance companies, born in the era of the horse-drawn carriage, were not built to capture Big Data"

Daniel Schreiber CEO Lemonade

80%-90% of an insurer's data in inaccessible, never mind analysable!. Take the humble CNF- claims notification form. Free text data is rarely, if ever, analysed and yet in these words lies the means to detect and deter fraud.

New digital initiatives that allow customers to  upload photos, videos from phone or dashcam  add visual explanation but what about the metadata? The damaged TV with a photo of the cracked screen taken at different premises from thye claimant's address?

That's why competitors like Lemonade have an edge- they live, breathe and exploit data including external sources. Worse still, digital giants like Amazon do it on a global and humungous scale.

Yet incumbent insurers can analyse both all that internal and external data and that is a great competitive advantage. Joing both and only they have the internal data.

Will they? A few will and they will be the winners and be the dominant insurers. Somemay just be the commodity suppliers to Amazon or Google whilst others will suffer a death by a thousand cuts from the like of Lemonade.

But the answer is in their hands today. Just need to acquire the digital people, skills and platform to access, analyse and exploit that data