Gartner Research

Insurers May Be Ready for Algorithmic Business, but Can IT Keep Up?

Published: 02 September 2016

ID: G00298853

Analyst(s): Kimberly Harris-Ferrante

Summary

Algorithmic business will help insurers extend beyond digital business to deploy autonomous business models. This will require that CIOs adopt advanced analytics and smart machine technologies and rearchitect their IT environments to support this vision.

Table Of Contents
  • Impacts

Analysis

  • Algorithmic Business

Impacts and Recommendations

  • CIOs who fail to build effective data leadership and governance will not meet the demand to become an algorithmic business
  • Insurance CIOs building an algorithmic business who neglect to develop new technologies and capabilities in the IT department, including prescriptive analytics, real-time operational intelligence, advanced visualization and machine learning, will lag behind their competitors
  • Lack of staffing and skills in both the business and in the IT department will prevent insurance CIOs from being able to transform their organizations into algorithmic businesses

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