Digital fragmentation is a barrier to income insurance, but it does not have to be an obstacle.
The introduction of new legislation on data protection in Europe has shown how international laws and regulations can have a major impact on companies' data migration initiatives.
Multinational insurance companies wanting to monetize their duties must constantly be ready to adapt their systems and processes to follow changes in local data laws and company rules. In addition, they must continuously work to build trust with their customers and show that they are ethical and cautious in their use of the information they hold.
Companies operating in Europe must change many of their internships and customer service agreements to comply with the new General Data Descriptive Regulation (GDPR). Designed by the European Union, the GDPR seeks to protect the personal data that companies collect, store and share.
Although it was expensive and burdensome for many multinational insurance companies, the new legislation had the positive effect of standardizing data protection requirements for companies operating in countries within the European Union. Different national laws and regulations are one of the major obstacles to successful data retrieval. They increase complexity and costs.
Although GDPR has introduced some consistency in the law on data protection in major parts of Europe, multinational carriers still need to violate many local laws and regulations that impede their effective collection and application of data. The last few years in global trade and attempts by national governments to protect jobs and intellectual property rights have added these barriers. It is disturbing that the number of trade and business restrictions adopted by the members of the G20 Forum has increased approximately four times in the last 1
The rise of obstacles to globalization has resulted in what we mean "digital fragmentation". Organizations must replicate the information they hold, as well as the resources they use to collect, store, manage and share such information to meet a variety of national rules and requirements.
Our survey of more than 400 global CIO and CTO found that 54 percent of these managers expect increased barriers to globalization in order to compromise their ability to use or provide data analysis in all national markets. A slightly larger proportion believes that governments around the world will strengthen their control over the transmission of data across national borders.
Digital fragmentation is undoubtedly an obstacle to data revenue. However, it must not be an obstacle. Major insurers and other multinational companies can take action to overcome digital fragmentation. Here are four key initiatives:
- Adjust strategic planning. Determine whether current strategic planning methods can meet the threats posed by digital fragmentation. Important considerations include the scope of the company's geographical footprint, the distribution of resources in different countries, the distribution of global services and the organization's presence in unconventional markets.
- Assess data flows. Identify potential threats to the flow of information to, inside and outside the organization. Measure the impact of cross-border rules on business models and growth plans.
- Strengthen local operations. Increase participation in key market economies by developing local talents, strengthening ties with related technology partners, and collaborating with national decision makers to control future legislation.
- Switching to technology. Look at emerging technology to provide solutions that can overcome digital fragmentation. Artificial intelligence can help companies navigate restrictions on the use of imported skills, for example while blockchain can provide safer and distributed transaction systems.
In my next blog post, I identify some of the most important issues that insurers need to answer before. You begin with monetizing data. Until then, take a look at these links.
Data rich, profit poor.
Utilize insurance data and analyze exhaust gas flow.
Technical Vision for Insurance 2018.
Digital fragmentation: Customize to succeed in a fragmented world.