Core insurance platform software and consulting services provider Majesco has released a new report Digital Insurance 2.0: Building your Future on a Robust Data Foundation, in which it stated that insurers must shift from report-driven to data-driven to succeed in Digital Insurance 2.0
Image: Digital Insurance 2.0. Photo: Courtesy of Carlos Muza/Unsplash
The report notes that while insurers know they need to make investments in data-related initiatives and technologies, their pace of planning and doing is not matching their level of awareness, resulting in a widening gap between them and emerging new market leaders in the age of Digital Insurance 2.0.
“In Digital Insurance 2.0, data is a source of competitive advantage for identifying unserved or underserved markets, identifying profitable niches, reducing or eliminating risk, driving channel optimization, enhancing service and improving customer experiences,” commented Denise Garth, SVP – Strategic Marketing, Industry Relations and Innovation for Majesco. “Consuming data from traditional internal and new external sources can improve the richness of information used to make a wide array of business decisions that are accelerating and widening the gap between Insurance 1.0 and Digital Insurance 2.0.”
Fortunately, research shows that many insurers realize the importance of getting their foundation in place so they can progress to more advanced analytic techniques and applications that leverage the data. The report details a data foundation roadmap to follow.
“In today’s new insurance age, data is the fuel for innovation,” commented Ben Moreland, VP – Data Analytics & Enterprise Architecture at Majesco. “But while users across the enterprise may be impatient to access and start using the data, a disciplined approach must be followed to ensure the full value of all data sources is realized, and to avoid the painful need to backtrack and re-do foundational steps that may have been skipped or compromised.”
More than ever, data and analytics are the foundation of a data-driven organization and the shift to becoming a digital insurer in the age of Digital Insurance 2.0. Insurers that stick to the traditional, pre-digital age formula of relying on internal, historical data used only for pricing, underwriting and reporting, will put their businesses at risk, both in terms of retaining profitable customers and capturing new markets and customers. The time for putting a data-driven strategy and foundation into in place is now, before the gap becomes insurmountable.
Source: Company Press Release