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Tactics to get satisfaction from data analytics
EMEA Insurance data analytics study
The world is experiencing the fastest pace of data expansion and technological change in history. Our work with the World Economic Forum in 2015 identified that, within financial services, insurance is the industry which is most ripe for disruption from innovation owing to the significant pressure across the value chain. Although this is an EMEA survey, a number of South African insurers participated and the results reflect largely similar trends between the separate geographical locations.
Key takeouts from this report
It is time for insurers to face the music and truly embrace the potential of data analytics by recognising it as a core capability within their organisations, and making the required investments. In order to do this, three things fundamentally need to change:
- Adopt a holistic approach – insurers continue to suffer from ‘cottage industries’ – pockets of tactical point analytics solutions operating in siloes. The focus must move away from this and towards building sustainable analytics capabilities which serve the organisation as a whole.
- Leverage ecosystems – there is an obvious benefit in having direct access to data and being able to make sense of it yourself. However, as both sources and volumes of data continue to grow exponentially, and technology rapidly advances further, the industry needs to look at other ways of getting the most out of this asset. There is a vast ecosystem of data, technology and talent providers, and a multitude of partnering options. These can allow insurers to move forward in a faster, more cost-effective and less risky fashion than if they operate in isolation.
- Prioritise change management – becoming truly insight driven requires a lot more than just data, data scientists and insights. Based on our experience, change management is rarely prioritised in analytics initiatives in insurance companies. The cultural shift required to make analytics a success needs to be more thoroughly addressed.
What our experts say
Our survey reveals there is a wide variation in analytical maturity of insurers across EMEA today. Few are seriously investing in the capabilities required to adopt analytics enterprise wide, with the majority still progressing in a slow and piecemeal fashion, with a long game ahead.