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Challenges faced by the insurance industry
Insurance companies are facing forces that make it difficult for them to compete in the global marketplace. These forces include slow industry growth, commoditised product offerings, pricing pressure from low-cost competitors, shifting channels for customer interactions, increased marketing spending, and demand for customer transparency.
Despite an abundance of data, most companies are not well-positioned to translate their data into valuable insights.
- Instead of treating information as a strategic asset, many insurers maintain data in separate silos to support their underwriting, claims, billing, and other business functions
- Multiple versions of customer information and disparate data sources may be required to create a coherent, 360° view of the customer
- Disagreements between the business and IT on data definitions can create unwarranted complexities
- Often actuaries and risk managers use a mix of IT extracts from heterogeneous operational systems and various business-managed end-user computing files, causing reconciliation challenges, heavy headaches and lots of other issues. Furthermore, many manual adjustments are performed, often in a decentralised form causing significant losses of traceability. Data quality checks—when performed—are usually informal and data are not stored in consistent sets, making the reuse of a given input set extremely challenging
Finally, we all know how it might be challenging to start such a project in the current economic environment. But that is the case if you only look at the problem from a narrow perspective.
Inside magazine issue 6, October 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).