Last week, I highlighted some of the challenges that insurers have experienced in their business intelligence (BI) initiatives—as well as areas for improvement. This week, I’ll share three of the six ways that insurers can get more out of their BI investments.
Getting more from business intelligence
Thanks to new BI capabilities, new information at a large P&C insurer is now available daily instead of in months, and with better access. Users can spend their time analyzing data and understanding its implications rather than collecting and formatting it.
1. Establish a core set of data most relevant to the entire enterprise.
This step is crucial to being able to:
- Prioritize the data requirements of the BI solution.
- Provide direction for data remediation activities.
- Offer focus for where to start implementing end-to-end data management solutions.
Perhaps most important, establishing a core set of data makes sure that BI is focused on the entire enterprise, not just a single function.
2. Establish core governance to manage values and definitions.
While most insurers recognize the importance of key governance components, including an enterprise data dictionary, data stewards and a governance council, only 27 percent have these components in place. Governance goes beyond decision-making; it must be at the core of every corporate process. In addition, data management also includes the active, ongoing quality evaluation to ensure that the information is of the highest quality and meets consistent standards.
3. Start controlled clean-up efforts.
Insurers are often data rich—but they also have a lot of data quality issues. To improve data quality, insurers should clean up existing and historical data, driven by the importance of the data and the ROI of the clean up. For example, improving customer data could be very useful; fixing old underwriter information less so.
Next week, I’ll discuss three more ways for insurers to get the most of their BI investments.
To learn more, download Reaping the Benefits of Analytics: Six Ways to Make Your Business Intelligence Smarter (pdf; opens in a new window).