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.
But hurdles remain, including significant concerns about data quality and accuracy, analysis paralysis and segmentation issues. There’s also no clear answer when it comes to ownership of advanced analytics within organizations and a lack of clarity on where it fits into insurance companies’ budgets.
We’ve seen remarkable strides in recent years when it comes to the insurance industry utilizing the mountains of available data. But there’s a mindset that still persists: Big data can help control costs, but using it for revenue generation or elsewhere is confusing. Where should organizations struggling to take advantage of advanced analytics begin?