Prelims

Half Title Page

Big Data

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EMERALD STUDIES IN FINANCE, INSURANCE, AND RISK MANAGEMENT

Series editors: Ercan Özen and Simon Grima

Books in this series collect quantitative and qualitative studies in areas relating to finance, insurance, and risk management. Subjects of interest may include banking, accounting, auditing, compliance, sustainability, behaviour, management, and business economics.

In the disruption of political upheaval, new technologies, climate change, and new regulations, it is more important than ever to understand risk in the financial industry. Providing high-quality academic research, this book series provides a platform for authors to explore, analyse, and discuss current and new financial models and theories, and engage with innovative research on an international scale.

Previously published:

• Uncertainty and Challenges in Contemporary Economic Behaviour

  Ercan Özen and Simon Grima

• New Challenges for Future Sustainability and Wellbeing

  Ercan Özen, Simon Grima and Rebecca Dalli Gonzi

• Insurance and Risk Management for Disruptions in Social, Economic and Environmental Systems: Decision and Control Allocations Within New Domains of Risk

  Simon Grima, Ercan Özen and Rebecca Dalli Gonzi

• Public Sector Leadership in Assessing and Addressing Risk

  Peter C. Young, Simon Grima, and Rebecca Dalli Gonzi

• Big Data Analytics in the Insurance Market

  Kiran Sood, B. Balamurugan, Simon Grima, and Pierpaolo Marano

Title Page

Emerald Studies in Finance, Insurance, and Risk Management - Volume 6

Big Data: A Game Changer for Insurance Industry

EDITED BY

KIRAN SOOD

Chitkara Business School, Chitkara University, Punjab, India

RAJESH KUMAR DHANARAJ

Galgotias University, India

BALAMURUGAN BALUSAMY

Galgotias University, India

SIMON GRIMA

University of Malta, Malta

and

R. UMA MAHESHWARI

Hindustan Institute of Technology, India

United Kingdom – North America – Japan – India – Malaysia – China

Copyright Page

Emerald Publishing Limited

Howard House, Wagon Lane, Bingley BD16 1WA, UK

First edition 2022

Editorial matter and selection © 2022 Kiran Sood, Rajesh Kumar Dhanaraj, Balamurugan Balusamy, Simon Grima, and R. Uma Maheshwari.

Published under an exclusive licence by Emerald Publishing Limited.

Individual chapters © 2022 Emerald Publishing Limited.

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No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center. Any opinions expressed in the chapters are those of the authors. Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

ISBN: 978-1-80262-606-3 (Print)

ISBN: 978-1-80262-605-6 (Online)

ISBN: 978-1-80262-607-0 (Epub)

Contents

About the editors

Prof Kiran Sood is Professor at Chitkara Business School, Chitkara University, Punjab, India. She has received her Undergraduate and PG degrees in Commerce from Panjab University respectively in 2002 and 2004. She earned her Master of Philosophy degree in 2008 and Doctor of Philosophy in Commerce with a concentration on Product Portfolio Performance of General Insurance companies in 2017 from Panjabi University, Patiala, India. Before joining Chitkara University in July 2019, Kiran has served four organisations with a total experience of 18 years. She has published various articles in various journals and presented papers in various international conferences. She serves as an Editor of the refereed journal, particularly the IJBST International Journal of BioSciences and Technology and International Journal of Research Culture Society.

Dr Rajesh Kumar Dhanaraj is a Professor in the School of Computing Science and Engineering at Galgotias University, Greater Noida, India. He received the B.E. degree in Computer Science and Engineering from the Anna University Chennai, India in 2007 and the M.Tech from the Anna University Coimbatore, India in 2010 and Ph.D. degree in Computer Science from Anna University, Chennai, India, in 2017. He has contributed 25+ Authored and Edited books on various technologies, 21 Patents and 53 articles and papers in various refereed journals and international conferences and contributed chapters to the books. His research interests include Machine Learning, Cyber-Physical Systems and Wireless Sensor Networks. He is a Senior Member of the Institute of Electrical and Electronics Engineers (IEEE), member of the Computer Science Teacher Association (CSTA); and International Association of Engineers (IAENG). He is an Expert Advisory Panel Member of Texas Instruments Inc USA.

Dr Balamurugan Balusamy is Professor in the School of Computing Science and Engineering at Galgotias University, India. His research focusses on blockchain and IoT. He has published 30 technology books and over 150 journal and conference papers and book chapters. He serves on the Advisory Committee for several start-ups and forums and does consultancy work for the industry on industrial IoT. He has given over 175 talks at events and symposiums. He holds a PhD degree in ‘Investigations of cloud computing access control techniques’ from VIT University, Vellore, India.

Prof Simon Grima is the Deputy Dean of the Faculty of Economics, Management and Accountancy, Associate Professor and the Head of the Department of Insurance and Risk Management which he set up in 2015 and started and coordinates the MA and MSc Insurance and Risk Management degrees together with the Undergrad degree in Insurance. Simon is also a Professor at the University of Latvia, Faculty of Business, Management and Economics and a visiting Professor at UNICATT Milan. He served as the President of the Malta Association of Risk Management (MARM) and President of the Malta Association of Compliance Officers (MACO) between 2013 and 2015, and between 2016 and 2018 respectively. Moreover, he is the chairman of the Scientific Education Committee of the Public Risk Management Organization (PRIMO). His research focus is on Governance, Regulations and Internal Controls and has over 30 years of experience varied between Financial Services, academia and public entities. He has acted as co-chair and is a member of the scientific program committee on some international conferences and is a chief editor, editor and review editor of some Journals and Book Series. He has been awarded outstanding reviewer for Journal of Financial Regulation and Compliance in the 2017 Emerald Literati Awards. Moreover, Simon acts as an Independent Director for Financial Services Firms, sits on Risk, Compliance, Procurement, Investment and Audit Committees and carries out duties as a Compliance Officer, Internal Auditor and Risk Manager.

Uma Maheshwari is pursuing her Ph.D. in Digital Image Processing, Approach for De-Noising from Image restoration in Anna University, Chennai. She has obtained her M.E degree in VLSI Design from Hindusthan College of Engineering and Technology, Coimbatore, affiliated to Anna University Chennai, Tamilnadu and B.E degree in Electronics and communication Engineering from Hindusthan Institutions, Coimbatore, affiliated to Anna University Chennai, Tamilnadu. She has more than a decade of teaching experience in various Engineering colleges in Tamil Nadu. Currently she is working as Assistant Professor in the department of ECE at Hindusthan Institute of Technology, Coimbatore. Her research interests include Signal processing, Image processing and soft computing. She published around 50 papers in refereed conferences and journals. She is the Life Member in the Indian Society for Technical Education & IEANG and IEEE membership.

About the Contributors

Sumit Agarwal is a renowned academician and researcher with experience of more than 21 years in the field of academics and corporate. He has a Doctorate and Postgraduate in Management from Jiwaji University Gwalior. He is currently working with Chitkara University, Punjab as Professor in Chitkara Business School. Earlier, he was working with organisations like JIMS, Amity, Sri Balaji, Society, Unison Group, and many more. He is also Academic Consultant for UP State Higher Education for NEP Courses, Reliance Retail, PTU, School of Retail Management, and many more. He has published 17 international and 4 national papers and 2 books and has registered 3 copyrights and patents. He is also research guide and supervisor for many universities.

Ajit Bansal is a Professor and Program Head (BBA Professional Programs) in Chitkara Business School, Chitkara University, Punjab, India, responsible to mentor and administer Undergraduate courses since 2018. He has been awarded a Doctorate degree by HPU, Shimla, and he has a Master’s degrees in Management and Commerce. He has a vast experience of over 25 years of working with various reputed industries and educational institutions like Graphic Era University, Dehradun, Shoolini University Solan, MAU, Solan, etc., imparting Management Education in India. His research interests are in the field of corporate finance, taxation, cultural tourism, and microfinance. He has published various research papers in reputed journals and participated in conferences/seminars on critical issues relating to the management.

Anu Bansal is an Assistant Professor in Shree Ram Mulkh Institute of Engineering Technology, Ambala, India, who is responsible to mentor and administer Postgraduate courses since 2018. She has a vast experience of over 10 years of working with various reputed industries and educational institutions. Her research interests are in the field of finance, tourism, and microfinance. She has published various research papers in reputed journals and participated in conferences/seminars on critical issues relating to the management.

Rajni Bansal is an academician of a great standing, worked as a faculty and academic administrator for over 14 years in her previous positions. She is also Cost and Management Accountant and a certified member of Institute of Cost Accountants of India. Her research interests are in the field of cost accounting, finance, and taxation. She has earned various positions during her journey such as Head of the Department of Management, Editor PIMT Journal of Research (UGC Care Listed Journal), acted as Superintendent, acted as an Assistant to Controller in Evaluation of PTU Exams, and many others. She has attended various national and international conferences. She has also published 2 books along with more than 20 papers in various national and international journals. Her name has also been included in the editorial of various UGC Care Listed Journals.

Ayesha Banu has 18 years of teaching experience and 11 years of research experience. She has been awarded with PhD (CSE) in 2019, Mtech (CSE) in 2009, and Msc (CS) in 2002. She published six papers in international journals and four papers in international conferences (Springer, ACM), a chapter title ‘Artificial Intelligence for Sustainable Health Care Advancements’ in the book Artificial Intelligence, Machine Learning and Data Science Technologies (Taylor & Francis), and two patents. She received two research grants from AICTE of Rs 1,00,000 for students club and Rs 93,000 for FDP. She also received National Innovative Educator 2020 award from I2OR. Currently, she is working as an Associate Professor in Department of Data Science at Vaagdevi College of Engineering.

Payal Bassi has a PhD in Marketing Management from Punjabi University, Patiala. Her doctorate is in ‘Marketing of Ready-made Garments: A Comparative Study of Punjab and Haryana’. She has 15 years of experience in teaching subjects related to marketing, HRM, and personality development. She has edited journals and books in the field of Business Management and Computer Sciences. She has publications of around 20 research papers in the international/Indian journals and in conference proceedings held at national and international levels. She has authored a book in the field of training and development. She is presently working as an Associate Professor in Chitkara Business School since September 2020.

Manju Dahiya is working as Associate Professor, Economics, School of Liberal Education, Galgotias University, Greater Noida, India. She has done MA, MPhil, MBA (Finance), and PhD (Economics). She is an Economist and worked with Noida International University, Roots Global Education, FIIT, and Gautam Buddha University. She has 13 years of teaching and research experience in different capacities with an exposure of corporate as well as research. She has contributed numerous articles, book chapters, and edited books in leading journals, seminars, and conference proceedings. She has presented her research papers in various national and international conferences and seminars.

Jagjit Singh Dhatterwal is currently working as Assistant Professor, School of Computing Sciences and Applications, PDM University, Haryana. He received Master of Computer Application from Maharshi Dayanand University, Rohtak (Haryana). He is also Member of Computer Science Teacher Association, New York, USA; International Association of Engineers, Hong Kong; International Association of Computer Science and Information Technology, USA; Professional Member Association of Computing Machinery, USA; IEEE; and Life Member, Computer Society of India, India. His area of interests includes artificial intelligence and multi-agents technology. He has number of publications in international/national journals and conferences.

Claire Farrugia has graduated from University of Malta with a Bachelor of Commerce in Insurance and Banking and Finance (2019) and later on achieved a Master of Science in Insurance and Risk Management (2020). She is currently working within the Maltese Insurance Industry as a General Business Assistant Underwriter, with a local insurance company for the past year. She has grown appreciative of insurance and hopes that she can grow and gain more experience within the insurance industry.

Kamal Gulati has a PhD and Data Analytics Expert with 19+ years of experience in teaching and research in computer science and information technology and presently working as Associate Professor at Amity University, Noida, India. He worked as Visiting Professor and Research Scholar (Under Faculty Exchange Program), CSIT Department at Stratford University, USA, for two quarters in 2016 and 2017. He has also worked at Bahrain University in the Kingdom of Bahrain Sr. IT Faculty (Computer Science Department) for two years. His areas of interest are big data analytics, data science, R software, internet and web technology, IT project management, decision support system, Excel, SQL, VBA, predictive modelling, risk analytics, marketing analytics, business analytics, networking, management information system, cybersecurity, cyber law, and database management system.

Monica Gupta has 8 years of experiences in the field of education, research, and consultancy. She papers published in various national and international journals and research papers presented in various conferences. She has interest in teaching various subjects like global finance, organisation behaviour, human resource management, general management, entrepreneurship, basic accounting, and many more. She has an experience of handling various administrative tasks and team leading for more than four years.

Shivani Inder is an Associate Professor at Chitkara Business School, Chitkara University, Punjab. She is the Faculty of Finance and Accounting. She has more than 10 years of teaching experiences. She is a Doctorate in Finance and also a certified cost and management accountant. She has experience of more than 10 years in teaching and research.

Dr Prateek Kalia is a postdoctoral researcher at the Department of Corporate Economy, Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic. Earlier, he has worked as Director and Professor at a leading university in North India. He is a specialist in the field of management with a keen interest in digital analytics, electronic commerce, e-service quality, and consumer behaviour. He is a prominent author and reviewer for various A-category journals. He has presented his work at several national and international conferences and received awards and accolades. He holds copyright for a novel concept in mobile commerce.

Sushil Kalra has an MBA in Hotel Management. He is pursuing a PhD at GNA University Phagwara. He has more than 13 years of experience. Currently, he is working as Deputy Dean of Chitkara College of Hospitality Management. He gained knowledge at various managerial positions in Pan India with renowned brands like Taj, Marriott, and Oberoi. He was awarded Best Professor in the area of Food and Beverage Service, Pan India.

Kuldeep Singh Kaswan is currently working in School of Computing Science and Engineering, Galgotias University, Uttar Pradesh, India. His contributions focus on BCI, Cyborg, and data sciences. His academic degrees and 13 years of experience working with global universities, like Amity University, Noida, Gautam Buddha University, Greater Noida, and PDM University, Bahadurgarh, has made him more receptive and prominent in his domain. He received Doctorate in Computer Science from Banasthali Vidyapith, Rajasthan. He has obtained Master’s degree in Computer Science and Engineering from Choudhary Devi Lal University, Sirsa (Haryana). He has supervised many Undergraduate and Postgraduate projects of engineering students. He has supervised two PhD graduates and presently is supervising four PhD graduates. He is also Member of Computer Science Teacher Association, New York, USA; International Association of Engineers, Hong Kong; International Association of Computer Science and Information Technology, USA; Professional Member Association of Computing Machinery, USA; and IEEE. He has number of publications in international/national journal and conferences. He is an editor and review editor of journals and books.

Suresh Kumar Kaswan pursued Bachelor of Technology in Computer Science and Engineering from Kurukshetra University, India, and Master of Technology in Computer Science and Engineering from CDL University, India, in 2005 and 2008, respectively. He has a PhD in CSE and currently works as a Professor in the Department of Computer Science and Engineering, School of Engineering and Technology, RIMT University, Punjab. He is a member of ISROSET. He has published 20 research papers in reputed international and national journals and conferences. His main research work focuses on ICT infrastructure and tools for grassroots and society developments. He has 16 years of technical teaching, administration experience.

Baljinder Kaur is currently working as an Assistant Professor at Chitkara Business School, Rajpura, and an Academic Coordinator for BCom (International Finance and Accounting) programme. She had been assigned added responsibility as ‘Activity In charge’ during the year 2016–2017. She has done her MCom from MCM DAV Chandigarh and UGC-Net qualified in commerce. She has a teaching experience of 4.5 years, and her areas of expertise are accounting and finance. She accepts challenging subjects and performs way beyond expectations. Her credentials include more than 15 research papers published and presented in national and international journals and conferences. She has received Teacher’s Excellence award as ‘The most committed faculty’ and ‘Shabashi Award’ from honourable Chancellor Sir, Dr Ashok Chitkara. She efficiently delivered a guest talk in Chitkara International School on Accountancy. She has effectively convened national-level faculty development programme in the year 2017. Her feedback is always excellent from the students and from the department. She always performed every official duties efficiently and effectively. She was selected to attend ACCA train the trainer programme in Banglore. She is a trained faculty for the new course on international finance and accounting. Recently, she has completed two consultancy projects in the field of operations research.

Jasleen Kaur has a PhD in Business Management from Punjab Agricultural University, Ludhiana. Her Doctorate is in ‘Performance and Usage of Data Mining Techniques for Predictive Modelling: A Study of Selected Stock Markets’. She is awarded Indian Council of Social Science and Research full-term Centrally Administered Doctoral Fellowship. She has published five papers in international/Indian journals and in conference proceedings held at national and international levels. She is presently working as an Assistant Professor in Chitkara Business School since November 2020.

Pirotta Kimberly, BCom (Melit.), MSc (Melit.), holds the position of a commercial underwriter at one of the leading and most prestigious insurance firms in Malta. She is graduating with a Bachelor’s degree in Banking and Finance and Insurance from the University of Malta in 2019, she also completed a Master of Science in Insurance and Risk Management from the University of Malta in 2020 with a Dean’s awards.

Dr Rajeev Kumar is an Associate Professor of Marketing at Uttaranchal Institute of Management, Uttaranchal University (NAAC A+) in Dehradun. He has earned his MBA from Indian Institute of Technology, Roorkee (Earlier University of Roorkee) and Doctorate from Uttarakhand Technical University (State University), Dehradun. He is UGC-NET qualified in Management and has more than 22 years of combined experience in Academics and Government Organizations. He has attended many national and International conferences and also contributed research papers in many reputed journals. Along with teaching he has also handled number of administrative assignments like Court Manager under High court of Judicature at Allahabad with integrity. Dr. Rajeev is a life member of All India Management Association Delhi and life member of Chartered Management Institute of London. He is also serving on the Board of HiMADRI as vice president. Rajeev has also received the best faculty award at Quantum University in 2018.The interest areas of Dr. Rajeev are Rural Marketing, Agri Business management, Green marketing and Sustainability.

Mr Sanjay Kumar, BTech (IT), Rajasthan Technical University Kota, MTech (CSE), Rajasthan Technical University, Kota, PhD (Image Processing) Galgotias University, Greater Noida (UP), worked as Software Engineer, Wipro Technology, Bangalore; currently, he is working as Assistant Professor (Information Technology Department), Galgotias College of Engineering and Technology Greater Noida (UP) and has more than 10 years of vast experience of R&D in Image Processing and 5G. He is the author of various national and international research papers published in on various prestigious platforms. He has guided so many research projects on various data-driven technologies like IoT, Image Processing, and 5G. He is Member of International Association of Engineers.

Sandeep Lal works with PDM University, Bahadurgarh, as Assistant Professor. He has started career in teaching from 2013 in BLS Institute of Law and almost five years serving there as Assistant Professor and Co-ordinator of Law Department. He was awarded PhD degree in April 2017 from MDU, Rohtak. He has completed LLB and LLM from Maharishi Dayanand University, Rohtak, Haryana.

Reena Malik has a PhD in Management (Finance) and qualified UGC-NET. She has more than 10 years of teaching experience and has two books to her credit, two book chapters, and few papers in Scopus. She is currently working as Assistant Professor in Chitkara Business School, Chitkara University, Punjab, India. She is actively working in the area of marketing.

Ercan Özen received his BSc in Public Finance (1994), MSc in Business-Accounting (1997), PhD in Business Finance (2008) from University of Afyon Kocatepe. Now he is Associate Professor of Finance in Department of Banking and Finance, School of Applied Sciences, University of Uşak, Turkey. His current research interests include different aspects of finance. He has (co-)authored about 10 book chapters and more than 50 papers, more than 30 conferences participation, member in International Program Committee of three conferences and workshops. Besides, he is an Editor in Emerald Publications. He is the Chair of International Applied Social Sciences Congress. He is also certificated accountant, member of Agean Finance Association and member of TEMA (Turkey Combating Soil Erosion, for Reforestation and the Protection of Natural Resources Foundation.)

Kitakogelu Ozili is an Economist at the Central Bank of Nigeria. He works extensively in academia and policymaking. He has experience in economic policy, financial inclusion, financial stability, financial innovation, banking regulation, and supervision. His areas of specialisation are financial economics, international development, accounting, development finance, the economics of financial markets, banking, and financial reporting. He has published extensively in many accounting and finance journals such as the British Accounting Review, Journal of Applied Accounting Research, Journal of Accounting in Emerging Economies, International Journal of Managerial Finance, European Journal of Finance, Research in International Business and Finance, etc.

Aradhana Rana has 11 years of experience in teaching undergraduate. Currently, she is working in Gobindgarh Public College, Alour, Khanna, in the Department of Commerce and Management. Her main area of interest is finance, accountancy and management studies, marketing management, and organisation behaviour. She has attended many conferences and presented paper in many national seminars. She has also published many national-level research papers. She also worked as Central Superintendent in Panjab University Exams.

Pallavi Seth is currently serving Amity School of Insurance, Banking and Actuarial Sciences at Amity University, Noida. Prior to this, she worked with Birla Institute of Management Technology, Greater Noida, for 3.5 years. She has done her doctorate from Mohan Lal Sukhadia University, Udaipur Rajasthan. Having PGDM in Insurance from BIMTECH (2006–2008), Fellow Life Management Institute, and ARA-Associate in Reinsurance from LOMA (Life Office Management Association), USA. She also holds Associateship from Insurance Institute of India, Mumbai. She is working towards achieving excellence in her research areas: insurance, financial literacy, government sponsored health insurance, and public health. She has presented and published research papers in several national and international conferences and journals. She regularly writes for national newspapers like Financial Express, Business World Marketing, etc.

Himanshu Sharma is working as an Assistant Professor at Galgotias University, Greater Noida. He is doing PhD from NIT Patna. He has been involved in teaching for about six years. Upon starting of his teaching career, he joined Delhi Technological University, Delhi, and served his duties for 1.5 years. His area of expertise includes image and video processing, machine learning, big data, and internet of things. He has two patents in his name and several research publications in reputed journals and conferences. He is GATE qualified. He has attended and organised various workshops and seminars. Being a part of various faculty development programmes, he is willing to utilise his ideas and thoughts to nurture the sprouting buds of our nation.

Jyotsna Sharma is working as an Assistant Professor in RIMT University. She is a Postgraduate in Business Management and holds Doctorate in the area of banking. She also holds Postgraduate Diploma in International Business and qualified UGC-NET. She has work experience of over 12 years and actively involved in teaching for more than 10 years in diverse areas of business management, finance, and marketing. She has authored a book titled Career Planning and Management. She has published various research papers in various journals and seminars/conferences of national and international repute. Also, she has contributed research papers which have been included as in chapter in different books with ISBN number. She has participated in several faculty development programmes.

Vimal Sharma has done his Postgraduate degree in Computer Science from M.D. University, Rohtak. He is associated with Chitkara University since 2007. He has over 25 years of experience in the education, training, and information technology industry. He worked on different applications, projects, implementation of open-source software and integration or apps with ERP. His research areas are enterprise resource planning, artificial intelligence, and innovation. His areas of interest include high-level programming language, MS Office, digital marketing, and trainer for Microsoft Excel and open-source applications.

Deepak Sood has done his PhD Business Administration (Finance) from Inder Kumar Gujral, Punjab Technical University, Punjab, and did his Master’s in Commerce from Punjab University, Chandigarh. He has also done his Postgraduate Diploma in Business Administration (Finance) from Symbiosis, Pune. He is an Associate Professor in the Finance and Accounting Area of Chitkara Business School, Chitkara University, Punjab, and currently, he is heading the vertical MBA-BFSI at Chitkara College of Sales and Marketing, Chitkara University. His research interests are in applied finance, behavioural finance, and regulatory economics. He teaches courses on financial accounting, financial management, security analysis, and portfolio management.

Nitin Thapar is a Management Professional having more than 17 years of experience in banking, financial services, and academics. He has a PhD from Punjab Technical University. His expertise areas are finance, quantitative techniques, accounting, and derivatives.

Sonal Trivedi is currently working as Assistant Professor in Chitkara Business School, Chitkara University, Punjab, India.

Shelly Verma is a research scholar pursuing her PhD at Galgotias University, Greater Noida, India, on OFDI and its significance for emerging economies. She holds a Master’s degree in Economics and an MBA degree in Banking and Finance. Her published work includes books on managerial economics, intermediate microeconomics, economic decision-makers, fiscal federalism, cooperative federalism, statistical quantitative analysis, quantitative methods and decision analysis, and leadership in a dynamic information age. She is an avid content developer and SME for online mode e-learning in microeconomics, international marketing, strategic marketing and financial management, cost and corporate accounting, corporate analysis and forecasting, business policy, and leadership.

Taranjit Singh Vij is a Doctorate in Business Studies from the School of Management Studies, Punjabi University Patiala. He has 12 years experience in teaching, attended more than 12 conferences and summits, and has 14 publications in reputed international journals. He also has memberships of reputed professional organisations. His area of interest in research is marketing, consumer behaviour, exports, information technology, and information technology enabled services. He has also chaired the session at international conference and key note speaker. He has also given expert lectures on various topics of marketing at reputed B schools. He is an Unit Assessor and an Internal Verifier for BTEC Pearson course in business.

Adil Zia is Professor of Marketing at Albaha University, College of Business Administration in Saudi Arabia. He has earned his PhD in Marketing from Aligarh Muslim University, India. He has more than 14 years of international teaching and research experience. Service marketing, customer behaviour, marketing research, marketing management, retail management, and other topics are among his key interests. He has published research papers in reputable indexed publications such as Scopus, ABDC, Web of Science, and others.

Preface

Insurance has always been a game of numbers. Keeping track of risks means knowing the numbers – the data. Increasingly sophisticated techniques were added over time to better calculate the odds. Three and a half centuries ago, ‘knowing the numbers’ was maturing into the mathematics of risk – actuarial science – one of the foundations of modern data analysis. It was only in the late 1960s and 1970s, more powerful machines and better software were coming into play. Online systems allowed workers to share information freely and conduct inquiries in real time. Investment in technology increased steadily. The insurance industry was on top of information technology (IT) trends in 1980, and the arrival of the Internet in the 1990s helped insurance data science. As a consequence, the amount of customer data being gathered and exchanged exploded. At the same time, the costs of data processing and storage were dropping rapidly. In lieu of the mass modelling of the past, insurers were gaining the capabilities (and the technical tools) to calculate risk on an individual level. The era of big data was just around the corner.

Big data is a relatively recent development in insurance industry because the size of the data sets previously made it impossible to analyse with traditional methods. But with advancements in artificial intelligence and machine learning, big data can be stored efficiently and analysed computationally. For insurance purposes, big data refers to unstructured and/or structured data being used to influence underwriting, rating, pricing, forms, marketing, and claims handling and incentivise risk reduction. With the global capacity to collect and store data growing and with the advancements in artificial intelligence (AI) and machine learning technology, insurers need to seriously evaluate their technology stacks to ensure they can remain competitive and respond to growing customer demand.

Insurers are sitting on a pile of data, but they are not able to use it to the maximum capacity. The reason is that not all data are digitised. Further, data that have been digitised is spread across different systems within the insurance companies, which may not be integrated. Lack of credible third-party data is also an issue. Several insurers have started implementing big data approach but only for their marketing campaigns. There is scope for efficient decisions based on big data not just in customer-facing functions like sales or claims servicing but across the insurance continuum like in areas of product development, pricing, risk assessment, fraud, and management. Where it was once difficult to gather data about potential risks, today’s insurers have lots of data to work with, for example, telematics devices, smartphones, social media, CCTV footage, electoral rolls, credit reports, website analytics, government statistics, and satellite data. Insurance aims to improve customer satisfaction, and it is employing big data to accomplish that. The more an insurer knows about its customers, the easier it is to keep them happy – and paying premiums.

The primary goal and main objective of this book is to provide good knowledge of big data concepts and their applications particularly in the field of life and non-life insurance. Big Data and Analytics for Insurers is the industry-specific guide to creating operational effectiveness, managing risk, improving financials, and retaining customers. In the advent of big data and analytics, this book fills the void with concrete information on using big data in the context of day-to-day insurance operations and strategy. This book fills a critical need in setting forth the role of modern risk analysis in managing catastrophe risk: storms, hurricanes, tornadoes, geomagnetic events, terrorism risk, earthquakes, floods, and COVID-19. There is no comparable reference work for this important subject area. It strikes a good balance between the technical aspects of the subject and the practical aspects of decision-making. From fraud analytics in claims management, to customer analytics, to risk analytics in solvency, comprehensive coverage presented makes this book an invaluable resource for any insurance professional.

The Editors

Foreword

Over the years, the insurance industry has diversified to meet the challenging and dynamic needs of the insured. Big data analytics plays vital role in transforming the insurance industry to the next level. Big data generated via telematics, smart phones, social media, credit reports, and web analytics is the key to exploiting and enhancing the current practices of the insurance industry. Thus, many established and new insurance companies have invested heavily in the automation of their insurance products.

In this book, the conceptual framework is defined for using big data for business intelligence in the insurance industry. The factors affecting the practices and standardization, and regulatory initiatives are discussed. The focus on using data science in formulating insurance product pricing, its optimization, claim prediction, and fraud detection is described. The role of big data in the growth of sustainable economics with a legal framework for trusted third parties, ethics, and government compliance are discussed. Later, the book focuses on the potential constraints of big data, its driving force, and the implementation of cyber security law for the insurance industry. Finally, the Digital Operational Resilience Act (DORA) for insurance, its legal framework, related business model, and distribution channel are provided.

Big Data: A Game Changer for Insurance Industry is indeed a commendable work by authors. The book covers all the aspects of the insurance industry and highlights valuable insights on why extracting and analyzing Big Data is essential for current practices and future trends.

I wish the readers great learning ahead!

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Ms. Aradhana Galgotia

Director of Operations

Galgotias University, India.