From paper to digital : survive the journey...

Are we ready for the digital age? What does it even mean for our businesses to survive in a technology driven world?

The effective use and analysis of data has become a regular topic of discussion in an industry impacted by disruptive technologies. It is also being driven by evolving customer behaviour.

This has been done through the rise of the digital native, as well as the growing focus on treating customers fairly.

Starting the journey

Many insurers have already started their data transformation journey, which allows them to tap into the growing amount of data available through disruptive technologies such as telematics and social networking.

Coupled with this, consumer behaviour has become increasingly sophisticated and more demanding. By harnessing technologies such as portals, mobile devices and social networking, consumers have access to a world of information related to pricing, coverage and customer experience.

Getting personal

Through enhanced analytics, insurers are able to profile consumers accurately as well as penetrate the market with products that will satisfy their needs and provide proactive customer service.

Given that most insurance placements continue to be conducted through brokers, they play a vital role in an insurer achieving its data transformation strategy. Brokers who engage customers face-to-face are well positioned to help insurers gain a better understanding of consumer behaviour in an ever-changing market; enhancing consumer experience.

The benefits of using data are not restricted to insurers alone. Brokers can also benefit through effective analysis of consumer markets and product offerings. This analysis allows for better risk selection and the rendering of appropriate advice.

Sadly while core data is available, its quality is questionable. In order to draw meaningful insights, data must be relevant and presented in the correct format.

Setting the standard

To resolve this, the first step for brokers is to identify an industry data standard to which they can align themselves to. Alignment to data standards such as STRIDE and ACCORD will allow for uniformity, and will be extremely useful for data transfer between broker and insurers.

Once a data standard has been set, brokers will need to perform a detailed gap analysis between their current data and the chosen data standard. The results of this exercise will provide a good overview of the current state of the data, as well as highlight any changes that will be required for compliance.

Aligning to the data standard can be capital and labour intensive, however partnering with the correct insurer can make a huge difference. This will help brokers obtain the necessary resources required to transform the data.

Brokers may also adopt other strategies to close the gap. After the system changes have been implemented, strategies such as a big bang approach - fix everything now - or a piecemeal approach - fix on renewal - may be adopted. Strategy selection will depend largely on the size of the portfolio, the effort required and the resources available.

Maintain the standard

Once the data has been fixed, the standard must be maintained to ensure that the correct information is captured, in the correct field, according to the correct format. A governance framework and plan is key to ensuring that there is no regression on quality.

In addition, the governance framework must take into consideration the rules stipulated in the Protection of Private Information Act which is likely to be implemented in the near future.

There is no doubt that sustaining data quality will require a cultural shift. Employees involved in day-to-day capturing must understand the need for accurate data and the implications of missing or incorrect data.

Fixing core data is the catalyst for benefits and the initiating stage for using big data. In the end, it is those who possess quality data, and utilise their data effectively, who will remain competitive.