Find out why insurance companies should turn data into an independent digital asset.
Insurance companies that want to improve and customize customer experiences need data, but not just data. As Alison Kennedy said in her post about becoming a data-driven insurance company, it's important to get the right data, whether it comes from internal or external data. Analysis and insights are just as good as the data on which they are based.
For insurance companies, data presents various challenges, including:
- Legacy systems. It is not always easy to get data from these systems.
- Data in silor. Data can be difficult to find when stored and managed by different business units and in different formats.
- Variable data quality and veracity. In older, more manual systems, the risk of failure was high.
- Data ownership. Privacy and security issues and regulations must be considered.
Because the potential use cases for data are exploding, insurers need a deliberate strategy to meet these challenges. I recommend treating data as a product and turning it into an independent digital asset. In this way, carriers can go beyond the idea of "one-off data", where data is closely linked to a single case, and the value of data can be maximized.
As potential use cases for data explode, insurance companies need a deliberate strategy to meet these challenges. I recommend treating data as a product and turning it into an independent digital asset. In this way, carriers can go beyond the idea of "one-off data", where data is closely linked to a single-use case and the value of data can be maximized.
To develop a more mature data model, insurance companies should take the following steps:
- Determine the business objective and define a product-centric vision of how data can be used to support this goal.
- Take an inventory of existing data assets and of laws and regulations that apply to data services.
- Disconnect data from applications and ensure that informed consent is obtained from data holders and subjects.
- Standardize tools, templates and methods so that a single logical image of the data can be maintained.
- Automate the movement of data, log everything that happens to the data so that computer supervisors can see its visible footprint and compliance with the legislation.
- Provide better access to users, to promote innovation and development of cases of new uses.
The volume of data available to insurance companies is growing exponentially. The insurance companies that transform into a robust data-driven company will be the ones who gather the insights they need to give their clients the personal experiences they require and surpass their competitors.
To learn more, read the report: Become a data-driven company