Data science is a term given to the broad array of activities used to gain insight and extract value from existing data sources, including techniques such as data analytics, predictive analytics, machine learning, data mining and artificial intelligence. The use of data science techniques enables the extraction of value from increasingly diverse sources of data.
The cost of storing data has been falling exponentially for decades, and many companies have started storing lots of potentially valuable internal data. Computing speeds have been increasing exponentially for decades, and data analysis software has been steadily improving, making it feasible for companies to analyse and gain insight from these larger data sets.
In this briefing note, Milliman’s Donal McGinley, Bridget MacDonnell and Eamon Comerford provide a high-level overview of how insurers can make better use of internal data to gain insight and drive competitive advantage.