Insurers- how much of your stored data can you access and analyse?
Most struggle to get over 20% whilst "Bought by Many" attributes is success in pet insurance to achieving 100%- its secret sauce.
Why the big gap? Mostly M&A activity resulting in many incompatible data silos. If your stored data remains hidden away you face disruption by insurtechs.
"InsurTechs use the advantages of modern technology to simplify and speed up processes, underwrite smarter, reduce distribution cost and improve the claims experience. Incumbents could do this too — in theory. As the anecdote above shows, their inflexible legacy organisations and technology are a major roadblock, and working as an unfair advantage for InsurTechs. If and when incumbents finally catch up, it may be too late."
Paul Morgenthaler FinTech & InsurTech VC at CommerzVentures in Medium June 11th 2019
Yet some incumbents are tackling the issue with solutions like 360Retrieve. Unlocking the value of the hidden data from all these silos across the globe to compete effectively. Without having to replace the core systems.
Forget AI until you achieve the goal of accessing all 100% data. This is far more more important- Master Data Management (MDM), analytics and effective decision making.
Act now before it is too late.
Recently I talked to the founder of a company that provides essential real-time data to optimise underwriting and claims assessment. A large insurer became interested in licensing his technology three years ago. Since then, the founder met with 282 executives of that insurer, in a total of 47 meetings. Still, there is no clear roadmap towards implementation. Reflecting on his “journey” with that insurer, the founder concluded he would have been better off if he had become an insurer himself and started to underwrite based on his technology! This anecdote illustrates why there is a need for InsurTechs and the edge they have over incumbents.