“What gets measured, gets managed” – so said Peter Drucker. According to IDC (International Data Corporation), the world’s volume of data will grow to 163 zettabytes by 2025, which would be equivalent to 10 times today’s amount. Consequently, solutions to quantitative as well as qualitative data management challenges need to be thought of right now.
Data analytics, the process of data cleansing, interpretation, analysing, sense-making, validation, visualisation and communication will therefore be ever more important to every business in the modern world, especially to those within the insurance industry.
A research report published by Deloitte, draws some interesting conclusions about the current use of data analytics by insurance companies. A survey based on 68 insurance companies across the EMEA region was conducted. The report reveals hurdles preventing certain insurance firms from optimally exploiting their current databases.
David Rush, Partner, Audit EMEA Insurance Co‑leader at Deloitte, said that “the message is not always loud and clear. Executive sponsorship is essential in shifting the culture of an organisation towards becoming data-driven and hungry for insights. Whilst the majority of insurers we surveyed are taking steps in the right direction, 40% told us there is a lack of senior leadership, and as a result, there is a limited understanding of the benefits and power of analytics across the organisation. Using data to inform decision making requires a leap of faith for some, and only by proving the value on the journey, may people start to believe in the benefits of becoming insight‑driven. The time is now for incumbents to take big steps forward and put the spotlight on their analytics capabilities – it is imperative if they want to stand a chance at defending their market share in the immediate future. ”
Axco Insurance Information Services has since long realised the importance of sound data management and analysis and is well known within the industry as an independent, reliable source of up to date data.
Insurers and data analytics: a little less conversation, a lot more action EMEA insurance data analytics study