As the Deloitte AI Institute noted in a 2021 report, while “data is often viewed as a costly necessity and a byproduct by many companies … more innovative organizations see things differently. This conundrum is not unique to insurance. Although the majority of survey respondents indicated they treat data more as an asset than an expense, the attitude and approaches among those interviewed in depth were often far more nuanced and aspirational. One particular finding stood out as a possible game-changer. As a result, many are stuck in the early stages of data management maturity-still striving to make data more accessible, shareable, and actionable. Our research found data often siloed by function, system, and platform, and its utilization usually relegated to basic efficiency and cost control initiatives. Interviews with 10 chief data and analytics officers or their equivalent at a wide variety of carriers (including two InsurTechs), as well as a survey of 50 insurance analytics leaders around the world, revealed nearly a dozen significant challenges for companies seeking to fully capitalize on their data to expand capabilities, spur innovation, and enhance growth.
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Yet many are still struggling to maximize the full value of data, despite the advanced technologies and analytical tools being put in place. Insurers are drawing upon a cornucopia of new data sources for everything from customer acquisition to claims thanks to the proliferation of sensors, digitization of physical records, and the growing inventory available from external information brokers. Why haven’t many insurers been able to fully capitalize on their treasure trove of data? Upgrading to more holistic data management systems, empowering teams to collaborate across functions, and moving beyond basic risk and cost reduction goals could help insurers capitalize on their data and analytics initiatives to accelerate innovation, bolster competitive differentiation, and ultimately sustain profitable growth.While not all data and analytics spending should be expected to deliver quick or even easily measurable results, chief data officers often emphasize the importance of regularly spotlighting tangible “wins” to maintain leadership support and funding.