Insurance providers need to let go of their outmoded data management strategies and adopt far-reaching data governance practices.

Insurers battling to get to grips with their vast data resources need to extend and broaden their horizons.

Conventional data management practices are no longer sufficient. Insurance providers need to attain high levels of data governance. This requires more than just risk and regulatory compliance. It calls for a comprehensive strategy that recognizes data as a vital business asset and puts in place systems, processes and rules that govern how data is used throughout the organization. Without an effective data governance strategy, insurers are likely to flounder in their attempts to manage, share and secure critical business data in the digital economy.

The illustration below shows the data management activities that a comprehensive data governance strategy must embrace.

Data governance is vital for insurers as they venture into the digital economy _De Jong (Figure 1)

A governance approach to the use of data ensures that the information needs of all parts of an organization are properly addressed. It enables data to be quickly converted into effective business insight for the benefit of managers and knowledge workers throughout the enterprise.

Swift, data-driven decision-making is becoming increasingly important in the new digital economy. Our research shows that managers often use the wrong information when making decisions.

A successful data governance strategy significantly improves the decisions made by managers and workers; ensures that information is well defined and understood; increases the trustworthiness of the organization’s data; and safeguards valuable data resources. This is accomplished by implementing rules, policies, procedures and defining roles and responsibilities that guide the management of data across the enterprise.

In my next blog post I’ll discuss some of the key steps to implementing a successful data governance strategy. Meanwhile, have a look at these links. I think you’ll find them useful.

Exploring Next Generation Financial Services: The Big Data Revolution

Accenture Technology Vision for Insurance 2016: People First

Accenture Technology Vision for Insurance 2015: Stretch your boundaries

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