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A little less conversation, a lot more action
How can insurers make the most of their data?
Smart use of data has been identified as one of the major disruptors in the insurance market. This poses a challenge to established market players who may struggle to compete with innovative new entrants. How well equipped are you to make best use of your data?
Insurance is an increasingly data-intensive business. Using data wisely is key. This requires meaningful strategic investments in data infrastructure and human resources and an innovative and nimble approach to match the fluid situation in terms of data risks and opportunities.
An holistic approach to data analytics should ensure that valuable data is used to the insurer’s advantage. Data can help insurers to develop and deliver products which meet consumer expectations at the right price and delivered through the right channels. Data technology such as telematics can help with the development of new policy offerings.
This Insurance Data Analytics Study is based on interviews with 68 insurers across the EMEA region including 8 of the 10 largest European insurance companies.
Whilst the scale of the insurers participating in the study is not comparable to Maltese operations, the key themes and recommendations in this paper remain relevant:
- Adopt a holistic approach – move away from the piecemeal approach of tactical point solutions and towards building enterprise wide capability ready to face the future, by delivering value through initiatives which support the insurer’s ambitions.
- Recognise limitations and leverage ecosystems – incumbents will be rapidly left behind if they continue to do everything in-house and focus solely on building their own capabilities. Insurers must recognise when to partner and when to invest. This will enable them to innovate and advance in an agile manner.
- Prioritise change management – change skills are often underestimated and undervalued, but analytics transformation cannot succeed without them. It is time for insurers to start addressing this by thinking about how they educate the business, engage stakeholders and drive behaviours which support insight-driven decision making.