Insurance 360: Customer, Risk, and Operations Data
Article Synopsis :
A ‘360-degree view’ is achieved when data from all touchpoints, including phone calls, texts, emails, tweets, policy information and documents, is aggregated and available for real-time use in all interactions and transactions.
“Insurance 360: Customer, Risk and Operations Data” from MarkLogic explores the 360-degree-view with a focus on customer and risk data, as well as data-centric strategies for improving operational efficiency.
Insurance customers behave differently than they used to. They interact differently with agents and insurance carriers, and they dictate which channel they prefer and when. To effectively engage with digital customers, insurers must bolster their technical capabilities to:
- Integrate customer data from all sources and processes into a coherent 360° view
- Ensure data security, especially important with the coming EU GDPR regulation
- Enable powerful search across all data types and social media channels to produce meaningful real-time results
- Future-proof for an ever-increasing volume and variety of incoming data
- Scale and adapt to new data loads and applications
- Reduce manual work and focus on value-adding activities
Insurance is the business of managing risk and many carriers are unable to utilize complete risk data because it’s tied up in silos, hurting loss ratios and competitive position. More carriers are employing data scientists to not only model and manage risk, but plot business strategy. Unfortunately, per the report, the average data scientist spends 80% of their time assembling and shaping data instead of analysis.
Automating the integration of policy data, geospatial capabilities, and alerting features enable the construction of real-time dashboards measuring risk across lines of business, integrating operational data from all relevant business applications.
Insurance carriers typically rely on disjointed legacy applications and manual processing. Work and data flow between different departments is complex and time consuming. Starting with mainframes and continuing over forty years with relational databases, SOA architectures, n-tier packaged software, web portals, data warehouses, data marts, and so on, each new business requirement and technology shift has created a new data silo. Furthermore, it’s common to see different CRM, quoting, billing, underwriting, and other key systems within each line of business.
The solution, concludes the report, isn’t to replace all these functioning applications, but rather integrate and leverage the data they contain in a single operational hub. The hub must be robust and enterprise-ready – trusted to run all business-critical operations. Data security is a top priority, and data governance teams, especially in organizations that have grown through M&A, must know the location of sensitive data organization-wide, across multiple systems.
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Digital Insurer's CommentsMarrying structured data, or data residing in the rows and columns of a database, with unstructured data residing on social media platforms and so forth is a huge challenge for legacy insurers. It’s even a challenge for digital natives such as Amazon, Bonobos and Aloquii.
Whereas most insurance CxOs consider data governance and data management to be the purview of their IT departments, the fact is data expertise equals dollars in the digital age. It’s where you should be investing, where you should be hiring, where you should be learning. Looking ahead, the coming AI boom will either hurt or help you depending on the quality of your data.
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