This is the final of a series of four articles about the state of data in the insurance industry. Previously, we focused on the current state of insurance, customer demands and business models. While these topics are critical, to evolve the insurance industry, companies must also look at how they are using data for the betterment of the industry.

Insurance companies have significantly more data than some think. But the industry has been unwilling or unable to use the data to its fullest extent. However, by ignoring this data, companies are missing opportunities to better service customers and to improve business.

Acquiring data

Take a customer looking for home insurance. By simply entering a postal code and home address, this person can receive an instant quote online about the cost of the insurance. Now, from an insurer's point of view, there is a ton of data that can be used to help this person: You can find internal and external data about weather risk, claims, construction, zoning, crime, accidents , and much other information.

These data points can provide patterns that can be used to help the customer get the right coverage while also protecting the insurance company from underwriting risk and fraud. The insurer can quickly marry this with the customer's quote request to provide a very personalized quote. For example, instead of simply stating how much standard, minimum insurance would cost, your website could provide very tailored quotes.