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Analytics as a Service and the Future of Cyber Claims

author by Bernard Cosgrave time Aug 26, 2021

In 2026, according to Statista, the global analytics as a service (AaaS) market value is estimated to reach approximately 101 billion U.S. dollars. AaaS refers to the provision of business operations and analytics software via the internet. As customers only pay for the service as long as they use it, this service model is expected to become more commonly used in the future. It is used in various sectors such as insurance, retail and wholesale, but also healthcare, government, telecom and IT industries. Among the key players in the market are Microsoft, Google, IBM, AWS, and HPE.

Analytics as a service (AaaS) market size forecast worldwide

Based on Analytics Type, Analytics as a Service Market is segmented into Predictive Analytics, Prescriptive Analytics, Diagnostic Analytics and Descriptive Analytics. Predictive Analytics is used to predict that is most likely to happen in the future, Prescriptive Analytics suggests actions to be taken according to outcomes. Diagnostic Analytics suggests why something happened in the past and Descriptive Analytics recommends what happened in the past. Source: VMR 

However, it seems likely that the value of Management Information for insurers in the foreseeable future will focus on risk mitigation, particularly when it comes to cyber exposures.  The largest priority for technology investment priority for insurance companies worldwide is cybersecurity, according to a 2020 survey. 

In the survey (see graph below), two thirds of the respondents stated that they expect their company to have a large or slight increase in their cybersecurity spend. The least popular response was robotic process automation, with only 30 percent of respondents expecting an increased spend on this category. 

Digital technology investment priorities of insurance companies worldwide in 2020 

Graph: Deloitte Insights – 2021 Insurance Outlook

Claims data provides a treasure trove of MI that can help to create meaningful insights into risk and exposure. For example, a Willis Towers Watson analysis of close to 1,200 claims from nearly 50 countries showed: 

  •  The average settled cyber claim (where any type of cost has been incurred, excluding zero value losses) is $4.88m
  •  Data breaches are the most frequently reported losses and have the largest total amount of costs associated with them
  • Malicious data breaches carried out by third parties (as opposed to accidental data breaches by the company or malicious data breaches carried out by rogue employees) are the most frequently occurring and most expensive type of data breach loss.

As WTW explains, understanding the scale of the larger claims and the impact they can have on a business is crucial. Whilst losses costing over $10m make up only 5% of claims by volume, they account for 95% of total costs.

DOCOinsights provides managers with a clear and real-time overview of all claims related activity. DOCOinsights highlights areas of weakness and strength in time to complete transactions, time to close claims, closure rates and other metrics​. The cyber claims market is very much on DOCOsoft’s radar and more, exciting news on this subject will be revealed in due course. 

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