Big Data Based Solutions for the Digitalization of the Insurance Sector

Deniz Altay Avcı

Adesso Türkiye

https://orcid.org/0009-0006-6443-6008

Gürkan Şahin

Adesso Türkiye

https://orcid.org/0009-0003-7739-6760

Şafak Karagenç

Adesso Türkiye

https://orcid.org/0009-0007-2480-0829

Burcu Kuleli Pak

Adesso Türkiye

https://orcid.org/0000-0001-6881-6792

Tuğba Tezer Arkan

Adesso Türkiye

https://orcid.org/0009-0009-6598-7962

Melih Kemal Tekin

AgeSA Hayat ve Emeklilik A.Ş.

https://orcid.org/0009-0001-3179-6545

DOI: https://doi.org/10.56038/oprd.v5i1.558

Keywords: InsurTech, Insurance Products, Big Data, Insurance Industy


Abstract

The insurance sector has entered a profound transformation process driven by technological advancements. Particularly in products such as individual retirement and life insurance, the ability to respond quickly and accurately to customer needs has become one of the key determinants of competitive advantage in the industry. In this context, Big Data analytics stands out among the innovations offered by Insurtech technologies. Big Data methods have had a significant impact on predicting customer behaviors, risk modeling, and optimizing processes within the insurance sector.

This study focuses on the modernization of a mobile application aimed at digitizing individual retirement and life insurance processes for a leading insurance company with a high market share in Turkey. The core innovative aspect of the project is the integration of algorithms supported by Big Data technologies into the sales and post-sales support processes of individual retirement and life insurance products. Through this approach, in-depth analysis of user behaviors, personalized recommendations, and risk management solutions are provided. This initiative introduces an innovative digitalization model that optimizes operational processes and enhances user experience in the insurance sector.


References

M. Eling, D. Nuessle, and J. Staubli, “The impact of artificial intelligence along the insurance value chain and on the insurability of risks,” The Geneva Papers on Risk and Insurance Issues and Practice, vol. 47, no. 2, pp. 205–241, Feb. 2021, doi: 10.1057/s41288-020-00201-7. DOI: https://doi.org/10.1057/s41288-020-00201-7

F. Holvoet, K. Antonio, and R. Henckaerts, “Neural networks for insurance pricing with frequency and severity data: a benchmark study from data preprocessing to technical tariff,” arXiv, Jan. 2023, doi: 10.48550/arxiv.2310.12671.

J. Yu, “Three fundamental problems in risk modeling on big data: an information theory view,” arXiv, Jan. 2021, doi: 10.48550/arxiv.2109.03541.

Z. Quan, C. Hu, P. Dong, and E. A. Valdez, “Improving business insurance loss models by leveraging InsurTech innovation,” arXiv, Jan. 2024, doi: 10.48550/arxiv.2401.16723. DOI: https://doi.org/10.1080/10920277.2024.2400648

A. Belhadi, N. Abdellah, and A. Nezai, “The effect of big data on the development of the insurance industry,” Business Ethics and Leadership, vol. 7, no. 1, pp. 1–11, Jan. 2023, doi: 10.21272/bel.7(1).1-11.2023. DOI: https://doi.org/10.21272/bel.7(1).1-11.2023

K. Javanmardian, S. Ramezani, A. Srivastava, and C. Talischi, “How data and analytics are redefining excellence in P&C underwriting,” McKinsey & Company, Sep. 24, 2021. https://www.mckinsey.com/industries/financial-services/our-insights/how-data-and-analytics-are-redefining-excellence-in-p-and-c-underwriting

L. Zheng and L. Guo, “Application of big data technology in insurance innovation,” International Conference on Education, Economics and Information Management (ICEEIM 2019), Jan. 2020, doi: 10.2991/assehr.k.200401.061. DOI: https://doi.org/10.2991/assehr.k.200401.061

Y. Li, “The application of big data in the insurance industry-with potential risks and possible solutions,” Advances in Economics, Business and Management Research/Advances in Economics, Business and Management Research, Jan. 2022, doi: 10.2991/aebmr.k.220603.069. DOI: https://doi.org/10.2991/aebmr.k.220603.069

K. Hussain and E. Prieto, “Big data in the finance and insurance sectors,” in Springer eBooks, 2016, pp. 209–223. doi: 10.1007/978-3-319-21569-3_12. DOI: https://doi.org/10.1007/978-3-319-21569-3_12

M. Eling and M. Lehmann, “The impact of digitalization on the insurance value chain and the insurability of risks,” The Geneva Papers on Risk and Insurance Issues and Practice, vol. 43, no. 3, pp. 359–396, Dec. 2017, doi: 10.1057/s41288-017-0073-0. DOI: https://doi.org/10.1057/s41288-017-0073-0

Most read articles by the same author(s)