Synthetic data key to future success in London specialty insurance: Earnix

Earnix, a provider of AI-based SaaS solutions, highlights the crucial role synthetic data will play in the future success of the specialty London insurance market in a recent report.

According to Gartner, the use of synthetic data in commercial applications is just beginning to gain traction, accounting for only 1% of data in 2021 but projected to surge to 60% by 2024.

Earnix observes that the growing demand for data in specialty insurance has prompted underwriters and brokers to embrace synthetic data to enhance their existing datasets, thereby improving risk assessment efficiency.

The report outlines how synthetic data addresses several key challenges in the London market. It enables specialty insurers to access necessary data for product development and testing without compromising security or customer privacy.

Moreover, synthetic data ensures confidentiality while facilitating crucial analysis. It supports more accurate modelling, simulation, and testing, particularly for evaluating rare or extreme events like floods, hurricanes, and fraud detection. This allows insurers to develop robust risk models without waiting for real-life occurrences.

The report also emphasises that generating synthetic data improves the performance of predictive models, enhancing fraud detection and other analytical insights. It enables insurers to simulate and stress-test models in new scenarios, facilitating the introduction of new products or expansion into new segments or territories where existing data may be limited.

Robin Gilthorpe, CEO of Earnix, comments, “The digital transformation of the London market’s complex specialty lines of business has only just begun. While it is a market-wide and fundamental shift in the way specialty insurers and reinsurers do business, it is not a one-size-fits-all solution. However, synthetic data coupled with AI, machine learning, and advanced analytics, holds promise for addressing various challenges in specialty insurance, including data gaps, privacy and security concerns, and fraud detection, among others.”

Gilthorpe adds, “Data plays a crucial role in revenue, profitability, and market share- particularly in this complex market where insight at a granular level can make a significant difference at a macro level. Specialty brokers and insurers know that in this rapidly evolving market, the ability to grow through change is paramount. Our white paper underscores the pivotal role of synthetic data in reshaping the London Market and outlines the next steps available to specialty insurers to harness the unparalleled opportunities for informed decision-making and enhanced operational efficiency.”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.