Louisa Pavis, Head of Consulting at Pro Global, shares some insights on how insurers can get more from their data, and why it isn’t quantity that is king, but quality…
For many years, insurers have been told that when it comes to data, the more they have the better, and to a certain degree this is true. Take artificial intelligence (AI) and algorithmic underwriting (AU) for example; these two technologies rely on data input to help optimise and automate underwriting processes – without it, they simply cannot work efficiently.
While in theory these technologies are designed to make processes easier, in reality what we are seeing is a new wave of issues where insurers are drowning in data, making neither head nor tail of the myriad of information they are often left to work with.
The issue that insurers often have is that data requirements are not uniform and there is no one all-encompassing solution to data issues. In reality, maximising the value of data is dependent on implementing a suite of solutions that provide you with the flexibility to create a dynamic data strategy – responding to the evolving needs of your business.
As controversial as this may seem, when it comes to data, less is actually more. It’s all about data quality over data quantity and to achieve this, insurers need data that is not only properly cleansed and validated but contains that innate flexibility to allow for interoperability across the organisation and to respond to a changing world.
For decades, data cleansing for Catastrophe modelling and exposure management has been the bane of many underwriters and catastrophe modellers, which is why we set out to develop CAI, a Cleansing Augmented Intelligence platform. Designed to help insurers work smarter, not harder, CAI allows insurers to get their exposure data in the best possible validated format to support analytics, and therefore deliver usable and sustainable results as part of an ecosystem of data transformation tools that support an overall data strategy
From automating geocoding and providing audit trails, to identifying new lines of insurance and storing information, CAI charts a course through the vast oceans of SoV data. It also helps optimise processes, make data streams flow properly and helps deliver improvements in profitability and operational resilience – the ideal data strategy for any company.
With the right data, insurers can not only quote faster and process claims quicker, but also deliver insights to optimise performance, identify fraud and exploit emerging trends. Whether the use case is exposure management or something else, your data must work for you to allow you to focus on priority areas of the business without unnecessary distractions. Every insurer is on a journey to understand what data they have, the quality of it and how to access the insights locked within it. Quality may be king, but right is might.
If you’d like to learn more from our team, or discuss anything covered above, please feel free to contact us