In my last post, I touched on some of the priorities insurance carriers have been dealing with on their digital journey and how data is a key element in their initiatives. Let’s now examine how data can enable these transformations.
Customer centricity requires understanding your customers’ preferences and buying patterns to the point where you know exactly when to offer each product or service. To do this, you must have an enriched master database containing a variety of touch-point information for every customer. Imagine a carrier tapping into social media to gather information on critical life events such as births, marriages, and property purchases and using that information to offer the most relevant products and services to each of its customers.
Business process digitization provides plenty of opportunities to carriers as they modernize their legacy systems. It allows them to create wrappers of data services on top of antiquated IT systems and revamp business process without changing underlying technology infrastructure. For example, they can modernize new business applications by breaking down some of the steps into services, thereby improving automation and reducing duplicative tasks.
Data analytics offers greater insight and fuels innovation, setting enterprises apart. Historically, actuaries have led the pack in this competency and have relied on data for decisions around pricing and risk. Today, an explosion of data, both internal and external, has pushed the frontiers of data sciences and its related usage for predictive capabilities. Thanks to technologies that tap into unstructured and machine data, the possibilities have become endless. For example, some carriers use telematics to tap into real-time vehicle information data to better understand driving patterns so they can determine best way to incentivize policy holders.
Of course, achieving digital excellence is a complex undertaking that affects all areas of the business. For many carriers, this is highly intimidating. Although it’s true that organizational alignment is necessary to achieve value from this type of initiative, a data-driven organization is capable of providing the type of momentum necessary to achieve measurable, long-range digital transformation.