3 ways insurers are mastering the art of driving insight from data
Data should be accessible from anywhere, for any user, and always result in the same view. But too often that’s not the case.
Data is universally both an asset and a problem for every P&C insurance organization — whether carrier, broker, MGA or insurtech. Having lots of data is good but using your own data to make better business decisions across your organization with speed, consistency and accuracy is best.
Leading insurers have figured out how to do that, essentially mastering the art of fully leveraging insight from their own data because it’s organized and can be easily accessed and shared across their enterprise — all from a single data repository. No redundancies, no discrepancies and no sifting through the candy jar to find the blue M&M’s.
For many of us, data has that mouthwatering effect — you’re excited to devour the data and energized by all the potential it holds.
But then, the reality hits: It’s just not that simple. Data should be accessible from anywhere, for any user, and always result in the same view. But too often that’s not the case. For instance, a question as simple as “what’s my loss ratio?” can result in three different answers depending on what data is being used and how it’s being filtered.
Where is your org on the data proficiency spectrum?
Everybody is doing data. But where is your organization on the data spectrum? Are you able to capture data and it’s just sitting there? Are you able to go from storing it to using it? Or best of all, do you have a comprehensive data strategy that enables you to access virtually any data from anywhere, share it across your org and feed it into analytics for real-time decision-making?
There are a host of reasons why insurers want to master their own data — from making fast, accurate underwriting and pricing decisions to proactively managing risk accumulations, as well as using insights to expand into new markets, innovate, and meet rising customer expectations.
Another driver is the loss of skilled professionals in key analytic roles who know the ins and outs of where to find the data they need — like that go-to colleague everyone depends on. What happens when their institutional knowledge is gone? In the end, if you can’t access your data and readily use it across your organization, growth, profitability and innovation suffer.
3 criteria for taking your data proficiency to the next level
Driving value from data now requires a modern data platform and strategy that enables access to virtually any data from anywhere. Here are a few critical components to move your organization along on the data proficiency spectrum:
1. Any data: Leading innovators in insurance are making their data accessible across their organizations. As such, everyone in your organization should have access to the same data (e.g. actuarial and claims shouldn’t be working within their own silos). This goes beyond premiums and loss data to include underwriting, claims, agency and the ability to ingest and access third-party data sources — including structured, unstructured and anything in between. Doing this well means no copying or moving data — everyone should be able to derive insights and work from a shared data resource that acts as a single source of truth.
You’ve heard the phrase “data democratization” which generally refers to making data easily actionable for any user regardless of their technical know-how. But what about democratizing your data platform? Users should have the capability to consume any data from any source without limitations, and this data should sit easily alongside existing data in an organized, secure and centralized fashion. A modern data platform democratizes more than your data experience, it democratizes the consumption of data regardless of its source or format.
2. Anywhere: Data isn’t just for reporting, actuaries or data scientists. Data-driven insights should be derived and leveraged in every corner of your organization and across every function. A common limitation carriers face, however, is the physical location and security of their data. Often, teams are not sitting in the same room, they are distributed nationally and globally.
This requires access to data from laptops, tablets and phones while in the office, working from home or traveling. Delays or limitations can slow innovation, force people to make decisions without all the information, and bring everything to a screeching halt when your “data person” is out of the office.
3. Anytime: Access to any data from anywherefor any user are prerequisites of a modern data platform. But what about anytime? Access to the right data at the right time speeds accurate decision-making. As more data is created in real time, a pursuit to embed the most recent information is driving competitive advantage. Employees are making critical and time-sensitive decisions around the clock — whether quoting new business or serving customers in the field. Getting the right information to them at the exact right moment matters.
There’s a focus today on the volume of data and acquiring more and more data, such as various forms of external or third-party data. And while more is always good, it also has little value if you can’t effectively use it. A strong data platform and strategy is the cornerstone of an entire organization. It will make or break the performance of every other aspect of a business, from underwriting and actuary to portfolio management and claims.
Solve the problem of mastering your own data and your business will have the foundation and framework to grow, innovate and compete at a whole new level. And best of all, risk professionals can stop digging and start using data in an actionable way.
Kirstin Marr is the head of Insurity Analytics, leading the development and operations for Insurity’s portfolio of data and analytics solutions. She is a recognized thought leader, specializing in data and predictive analytics in the insurance market. Prior to this role, Kirstin served as president of Valen Analytics, which was acquired by Insurity in 2017, and previously served as the company’s head of marketing, leading market strategy, brand awareness and innovative thought leadership.
Opinions expressed here are the author’s own.
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