Insurers could gain from data management strategies to improve insurance data analytics.
While few insurers today are ready to take full advantage of the opportunities afforded by insurance data analytics, they could start improving their data management strategies immediately. Insurers need to take a bold approach to shake-up their business models, enhance their data governance, and focus on enterprise data management.
Our experience suggests that few insurers today are ready to take full advantage of the opportunities that could be captured with greater data insights.
Many insurers continue to struggle to optimize their data and analytics capabilities, since big data is continuously growing, not only in size and scope, but also in complexity. As a result, many insurers now need to explore new forms of data stewardship, including data acquisition management and integration in order to wring real insights from their data.
Basic opportunities include gaining insights simply by integrating social media data with claims data to identify potentially fraudulent activity, assess liabilities more accurately, and better monitor risks.
Thinking more broadly, we recently worked with one insurer to create a ‘risk dashboard’ that integrates data from more than 40 different social media sources to provide real-time monitoring of a range of risks in key geographies. This lets customers more actively manage and monitor their risks, reduces overall risk for the insurer, and creates value-added service to clients.
However, moving beyond a traditional ‘process’ focus (i.e. how things get done) and towards a more ‘informational’ focus (i.e. why things get done and in what situations) will require insurers to reconsider their approach to people, process and technology.
Many insurance executives still see big data as a ‘big challenge’ rather than a ‘big opportunity’ and – with little competitive pressure to adapt and a long list of other high-priority challenges on the horizon – most have opted to dabble with their data rather than attack it.
The greatest challenge revolves around current data management strategies, since data is often trapped in silos, inconsistently labeled or locked behind access controls, preventing a ‘single view of the truth.’ Likewise, data governance and ownership is often spread across the organization.
Our experience suggests that insurance organizations could take data management actions today to evolve into data-driven, insight-led organizations:
We believe insurers that are able to create the right environment and data governance framework to support data-driven experimentation and exploration will win in the ‘customer-centric model’ of the future. Those who merely ‘dabble’ with their data may soon find it difficult to catch up.