Let us start first by defining data visibility. What does this term, so often used in the Insurance world, actually mean, and why is ‘data visibility’ so important?
Data visibility – the ability to see your data. Seems simple really, but it also then goes on to encompass the ability to monitor and make informed decisions using the data you can see. It is important to understand where your data is stored, who can access it and how to use it. With the Insurance industry at a critical stage of outdated legacy systems being replaced with newer solutions and start-up insurtech challengers coming onto the scene in full force, data visiblity is at the heart of many decisions making processes. Without data visibility an insurer cannot give a fair prices based on evidence, it would merely be guessing. And no one wants a guessing game when it comes to the premium being paid on an insurance policy.
As industries grow, so does the data available. In the insurance industry, it is important also to consider that the company you have insured with may not be the company underwriting the risk. Again, more data to be collected and exchanged.
Here’s where we move on from the simplicity of data visibility itself. The exchange of data and the speed in which it is exchanged from party to party is essential in ensuring a smooth user experience for the end user. Not just the customer buying the insurance policy, but the complete journey of data. Whether the data need to be exchanged by an MGA, Carrier or Broker, there is still data flying about between organisations, department and even countries. And guess what – this data doesn’t come in one nice simple format from and too everyone else. Each organisation, country, region, department even, may have its own set of standards and formats.
So why should we worry about data visibility and the speed of data exchange? There are benefits to having great data visibility and of course consequences to not having it.
Security – Knowing and being able to see who has access to it can help to identify potential security risks. With out visibility, the risk to your data is greater.
Compliance – Data visibility enables you to verify your compliance, without it, you cannot be certain that your business is complying with industry standards.
Efficiency – Streamline your processes. Reduce manual efforts, unnecessary steps a process duplication. There is no excuse for misuse of data or time wasting trying to find the correct data.
Decision-making – the ability to easily see the data relevant to your organisation and make the best decisions for your business processes. Making informed decisions is critical to every business to ensure that the organisation is moving in the right direction and supporting its clients as best possible.
Recently there’s been a realisation within the insurance industry. A realisation that ways of working need to change. The prompt for this change? Data. We live in a data driven world and the insurance industry is no different. With the volume of data handled and exchanged by the insurance industry rising on a daily basis, it’s clear that new ways of working are needed.
Now I’ve covered a small introduction into How data visibility and speed of data exchange can be used – why not download our whitepaper – Digital Data Exchange and read the full article.