Angus Black, BarnOwl Data Solutions

The world of insurance is in the midst of a data revolution, and its pace is only accelerating. In our previous discussion, we explored the foundational role that data plays in risk management.
In this follow-up, I’d like to take you deeper into the strategic future of data, how emerging technologies, regulation, innovation, and even global crises are converging to reshape insurance as we know it.
At the centre of this evolution lies a simple truth: every new tool is a new data source. From wearables and telematics to drones, satellite imagery, and the Internet of Things (IoT), the industry is being flooded with real-time, highly contextual data. This isn’t just reshaping underwriting; it’s redefining what it means to assess and manage risk.
Turning real-time data into real-time decisions – The impact of real-time data access cannot be overstated. Whether it’s health insights from wearables, driving habits from telematics, or weather data from satellite imagery, the immediacy of information is revolutionising insurer responsiveness. Claims can be processed faster. Pricing models can dynamically adjust to usage or behaviour. Interventions can happen before a claim even occurs.
Real-time insights also enable early warnings. For instance, a wearable might alert a policyholder of a health anomaly before symptoms appear. In commercial fleets, telematics data can empower managers to address risky driving behaviours proactively. It’s not just about insurers reducing claims, clients benefit too, by avoiding losses altogether.
The data deluge: Risk, privacy and trust – However, with great data comes great responsibility. As insurers collect more and more data, from sensitive health metrics to behavioural patterns, the risks associated with data privacy and cybersecurity grow exponentially. Criminals see insurance data as highly valuable: it contains financial details, asset information, and behavioural trends that can be exploited.
To counter this, insurers and service providers must adopt a security-first approach from the ground up. Before a single data point is stored or processed, key questions must be answered: How will the data be protected? Who will have access? How will that access be monitored?
Regular security audits, penetration testing, and access control reviews are no longer optional, they are non-negotiable. Additionally, insurers need comprehensive cyber insurance in place to manage breach risks, both to themselves and to their customers.
And let’s not forget the human element. Social engineering has become one of the biggest threats, often exploiting employee error rather than technical weaknesses. Regular staff training, awareness campaigns, and clear internal policies are critical to keeping the gates secure.

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Regulation as a strategic guidepost – In South Africa, the Protection of Personal Information Act (POPIA) and regulatory guidelines from the Financial Sector Conduct Authority (FSCA) have brought welcome clarity to what can and can’t be done with data.
These regulations ensure:
- Privacy by design is embedded into all data solutions.
- Audit trails are maintained to track who accessed what and why.
- Governance frameworks are in place to ensure accountability.
- Information officers are appointed to oversee data compliance.
Far from being a barrier, regulation has helped insurers align their innovation efforts with ethical and legal data use. It’s now easier than ever to know how to act, what’s allowed, what’s not, and what permissions are required.
Balancing innovation with prudence – The temptation to collect more data than needed is strong, especially as insurers compete to create personalised products and smarter engagement strategies. But more data equals more risk. The challenge is to balance innovation with data minimisation.
Insurers must now rationalise each data point: Why do we need it? What will we use it for? Is it worth the risk?
Thankfully, the regulatory landscape and technological maturity in South Africa are helping insurers answer those questions confidently. Compliance is no longer a hurdle but a fundamental component of strategic planning.
Levelling the playing field – A misconception exists that sophisticated data analytics are the exclusive domain of large insurers. In reality, tools like Microsoft Power BI, which integrates seamlessly with Excel and Office 365, are democratising access to analytics. For smaller players, these tools offer affordable ways to blend data sets and generate meaningful reports.
For more advanced analytics, especially involving third-party data or predictive models, external expertise is available. At BarnOwl, we’ve built scalable, volume-based solutions designed to serve both small and large insurers with equal effectiveness.
What’s next: AI and climate resilience – Looking ahead, artificial intelligence will be the biggest game-changer. From automating claims processes to personalising engagement, AI will redefine policy lifecycle speed, efficiency, and relevance. But AI doesn’t work in a vacuum, it needs clean, structured, and comprehensive data to function effectively.
Equally critical is the role data will play in addressing climate risk. With extreme weather events increasing in frequency and severity, insurers will need geospatial and environmental data to assess, price, and adapt to evolving risk landscapes. Data will become the compass guiding insurers through uncharted territory.
What keeps me up at night? – Despite all the innovation, one concern persists: data quality. No model, AI engine, or predictive tool can overcome poor data. It’s the classic case of garbage in, garbage out. Ensuring data is accurate, complete, and trustworthy remains the bedrock of everything we do. As we invest in fancy analytics, we must never lose sight of the basics.
In closing, the future of insurance belongs to those who can blend data mastery, ethical innovation, and strategic agility. We are entering an era where data will not only inform business decisions, but it will also be the foundation of trust, protection, and long-term resilience in the insurance value chain.