More than 80% of Insurance Leaders See Fragmented Customer Data as a Threat
Reltio, the industry’s first cloud-native, software-as-a-service (SaaS) data platform that accelerates the value of data, unveiled a new report investigating the role of data management in the insurance industry. The report, “Insurance CIO Mega Trends: Building Effective Digital Strategies in a Transforming Insurance Market,” explored the high-level trends insurance CIOs are focusing on while designing their digital strategies for the near term. Most notably, the study found nearly half of respondents identified data management—including integration, quality and master data management—as a priority for technological advancements in the short term.
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“Insurance providers and other industry companies need the ability to depend on and trust their data to fuel business decisions. To do this, they need a single source of trusted information and the flexibility to support real-time decision-making.”
Below are key takeaways and findings from the report.
Embracing Emerging Technologies is Key, but Prioritizing Data Management is Critical to Transformation
Insurance leaders recognize that digital technologies are key to driving growth and improving customer experiences. Most agree that back-of-the-house technologies will have the most significant impact.
- Data management will be important to enabling insurance companies’ digital transformations. Nearly half of respondents (43%) agree that data management—including integration, quality, and MDM—will be among the most important technologies to their digital transformations over the next three years. This will be foundational to big data analytics, which over half (53%) of respondents agreed would be important to their digital transformations.
- Almost two-thirds (62%) say big data analytics will have a significant impact on the insurance industry as a whole—a larger share than those who agreed cloud computing and storage (57%), Internet of Things and telematics (55%) or artificial intelligence and machine learning (54%) would have a significant impact. Over half (53%) said data management (inclusive of data integration, quality and MDM) will have a significant impact, outpacing emerging technologies like virtual assistants and chatbots (46%), blockchain technology (38%) and drones and robotics (15%).
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Over 80% of Tech Experts Anticipate Fragmented Customer Data As a Top Challenge
Insurance companies need to make sure that their data is clean, timely, and accessible so that it can be used to fuel daily operations and make better decisions.
- 82% of respondents state fragmented and siloed customer data poses a challenge when attempting to deliver seamless customer experiences.
- Nearly one-third of all executives surveyed identified increasing data complexity or competing against disruptors such as InsureTech startups (31% each) as the top technology challenges facing the insurance industry today.
- Most of the respondents (55%) say their data management operation has room for improvement. They manage their data effectively, but they still contend with some data silos.
Investing in New Digital Customer Experiences Is Critical
Respondents recognize the importance of customer experience, but admit there’s work to be done to create a solid data foundation for these experiences.
- Most respondents rate their ability to leverage customer data to fuel new digital customer experiences as good (58%) or exceptional (25%). Even so, fewer than half (47%) plan to launch new digital customer experiences in the next 12 months.
- When asked to identify two of their top goals for improving customer experiences in the next 12 months, nearly half (44%) claim they will offer a personalized, contextual experience on every channel. Over one-third (37%) will gain visibility into the end-to-end customer journey.
- Over one-third (36%) of participants claimed they will enable intelligence automation for personalized marketing; nearly one third (32%) will increase self-service options for policy changes, first notice of loss or claim status.
Strategies for Delivering Better Experiences with Data and Analytics
As insurance companies strive to become digital leaders, the respondents pointed to three key areas to succeed:
- Mitigate data management challenges: Insurance companies seek solutions to defragment customer data, break down silos, and gain more visibility into their overarching pools of enterprise data. Although many respondents believe a customer data platform is useful for marketing purposes, many say an MDM is a better solution for end-to-end organizational visibility.
- Analyze and predict market trends: Companies turn to data and analytics to gain insights into the insurance market and customers’ needs. They can then combine those insights with their internal analytics to identify areas for innovation and operational improvements.
- Use data and analytics to improve customer experiences: Insurance companies use the insights gained from marketing and customer data to deliver new digital customer experiences and operational excellence. They deploy self-service capabilities for their customers and increase automation in the claims process, where appropriate, to speed up claims and deliver faster results for customers.
“Insurance industry leaders recognize that many of their biggest customer experience and technology priorities require a strong data foundation,” said Venki Subramanian, VP of Product Management & UX at Reltio. “Insurance providers and other industry companies need the ability to depend on and trust their data to fuel business decisions. To do this, they need a single source of trusted information and the flexibility to support real-time decision-making.”
Reltio has been a trusted partner for insurance companies as they manage customer, policy, and claim data across many disparate legacy systems. By using a cloud-native SaaS MDM offering, businesses can unify and cleanse multi-source, complex core data into a single source of trusted information – in real time. Insurers, like Empire Life, can gain a complete view of their customers so they can pivot from policy-centric operations to a customer-centric one. API-led, easy integration with the partner ecosystem, allows insurers to launch new innovative services, and drive growth faster.
Empire Life, one of the top ten life insurance companies in Canada, replaced their legacy master data management system with the cloud-native Reltio platform. Not only have they reduced ongoing infrastructure costs, Empire reported a 60% increase in first call resolution.
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