Data is an asset. That is the mindset companies in the insurance industry must quickly embrace if they are to remain competitive in a landscape that is being challenged from seemingly all angles. From product commoditization, shrinking margins and disruptive startups to aging technology and processes, changing customer expectations and regulatory uncertainty, insurance companies face a critical imperative to harness data assets existing within their enterprise today.
Key takeaways from the report include:
- Only 11 percent of respondents strongly agreed that their organizations were fully realizing the benefits of advanced analytics. Forty-six percent somewhat agreed that their organizations were.
- About a quarter (27 percent) named improved customer experience as the greatest potential benefit of advanced analytics. Twenty-one percent said they could reduce claims costs and 14 percent chose increased sales.
- Nearly two-thirds of respondents said data quality and accuracy was the greatest challenge associated with advanced analytics. When asked about the greatest risk, about half chose inaccurate data.
- Fifty-one percent of respondents said they already used advanced analytics in that area, followed by 42 percent who said they used actuarial model testing.
- Seventy-six percent of respondents said they were not investing in disruptive data sources, though about half of those respondents said they were considering making an investment in secondary sources that would augment their own data. When asked about the greatest risk, about half chose inaccurate data.
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