Data within your insurance business is only useful if navigated carefully

Organizational DNA is a largely untapped source of business growth. This term refers to the data generated by people and their work in an organization, which creates a pattern revealing the DNA of a business in real time. As discussed in my previous blog post, insurance leaders are beginning to recognize that vast amounts of internal data on their work and workforce can be extracted using a range of new digital innovations. Although this data is rich with potential, if mismanaged, it could also turn into a minefield.

Mapping out the risks

If insurance businesses don’t use internal data responsibly, they risk losing the trust of their employees. This could convert into a 6 percentage point drop in future revenue growth. What constitutes misuse of data? Anything from not clearly stating what kind of data is recorded, to using data to wrongfully terminate employees.

How employees feel about data

Accenture recently asked employees how they felt about the collection of workplace data, and the answers were clear. Recent scandals over the misuse of data has made 61 percent of employees reticent, but overall, 89 percent would be open to the collection of data if it had a positive impact on their wellbeing and career path.

 

BUT JUST BECAUSE INSURANCE BUSINESSES CAN DOES NOT MEAN THEY ALWAYS SHOULD

Recent scandals over the misuse of data has made 61 percent of employees reticent, but overall, 89 percent would be open to the collection of data if it had a positive impact on their wellbeing and career path.

It starts at the top

Only 27 percent of business leaders in the insurance industry felt completely confident that they could use data in a highly responsible way. This is a figure worth changing. If leaders adopt responsible strategies, it could be worth more than a 6 percentage point increase in future revenue growth. If you add that to the 6 point drop potentially caused by the loss of employee trust, then a total of 12.5 points of growth is at stake. 

If leaders adopt responsible strategies, it could be worth more than a 6 percentage point increase in future revenue growth. If you add that to the 6 point drop potentially caused by the loss of employee trust, then a total of 12.5 points of growth is at stake. 

The foundation is trust

Any strategy or conversation about data needs to start from a base of trust.

Leaders need to continually ask the question: How can we use data for business benefit while honoring the rights of the data source? In the posts to follow in this series, I will present an approach on how to ‘decode organizational DNA’ responsibly and ethically and establish a culture of trust in your business. If you would like to read further on Organizational DNA, download the Accenture Strategy report, ‘Putting Trust to Work. Decoding Organizational DNA: Trust, Data and Unlocking Value in the Digital Workplace’ here.

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