Big data: The BIG factor driving competitive advantage

Big data: The BIG factor driving competitive advantage

Insurers need to take a bold approach to shake-up their business models, enhance their data governance, and focus on enterprise data management.

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OPPORTUNITIES IN INSURANCE COMPANY DATA

Many insurers are struggling with their data and analytics capabilities with big data's continuous growth and complexities. Insurers need to explore alternatives such as data acquisition management and integration in order to gain a real insights from their data.

Integrating social media data with claims data for instance can help identify potentially fradulent activity, assess liabilities more accurately and better monitor risks.

 

CHALLENGES TO HARNESS INSURANCE BIG DATA

Many insurance executives still see big data as a ‘big challenge’ rather than a ‘big opportunity’ and – with little competitive pressure to adapt and a long list of other high-priority challenges on the horizon – most have opted to dabble with their data rather than attack it.

The greatest challenge revolves around current data management strategies, since data is often trapped in silos, inconsistently labeled or locked behind access controls, preventing a ‘single view of the truth.’ Likewise, data governance and ownership is often spread across the organization.

We believe insurers that are able to create the right environment and data governance framework to support data-driven experimentation and exploration will win in the ‘customer-centric model’ of the future. Those who merely ‘dabble’ with their data may soon find it difficult to catch up.

© 2022 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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