The Data Challenge:
Data is a cornerstone of the property and casualty (P&C) insurance industry, driving informed decision-making and operational efficiency. It enables insurers to assess risk accurately, price policies competitively, and predict future trends. By leveraging data, companies can enhance claims management, improve customer experiences, and develop innovative products tailored to evolving market needs. In an industry built on mitigating uncertainty, data provides the insights necessary to remain agile, reduce losses, and foster trust with policyholders.
The Problem:
Industries establish universal standards for many things, including data, to increase efficiency in utilization, reporting, and sharing. However, within the U.S. P&C insurance industry, there are few widely adopted common data standards. This lack of standardization causes insurers and others to spend billions of dollars each year translating data into formats for regulatory reporting, catastrophe models, and a myriad of other transactions. The time and cost involved increases resistance for insurers to cooperate with regulators attempting to obtain data to inform constructive legislation and regulation.
With rising catastrophes and growing populations in high-risk areas, access to aggregate data is crucial not only to the insurance industry, but to the U.S. economy, which requires affordable and accessible insurance to function.
It's Time for Something New and Non-proprietary!
AAIS proposes to make its data model architecture “open source” so that others in the insurance industry can adopt it, in part or fully, at no cost.
