Here's one of the major findings of a new Deloitte report Insurance Industry Outlook: High Hurdles Loom in 2011 & Beyond. I quote:
"Insurers should treat data as a strategic asset. Data is the lifeblood of insurance, yet many carriers are seeking a transfusion of additional information to better control their costs, meet new oversight demands from internal and external stakeholders, and establish more effective enterprise risk management systems.
While more insurers are starting to recognize that data is a strategic asset that can give them a competitive edge, there appears to be much room for improvement in how information is handled. Indeed, Deloitte’s 2010 “Global Risk Management” survey of chief risk officers at global financial services firms found that only small percentages of respondents characterize their organization’s risk data strategy and infrastructure as “extremely effective.”
Whether it comes to data controls or checks (8 percent), data management and maintenance (7 percent), data standards (6 percent), data governance (5 percent), data process architecture and workflow logic (5 percent), or data sourcing strategy (3 percent), very few respondents see their company’s systems as “extremely effective.” Indeed, in each category, less than one-third of respondents even rated their carrier’s performance as “very effective.”
Thus, proactive insurers are putting more transparent, accountable and productive data management systems in place, while some are appointing chief analytics officers to monetize the information generated."
The quoted effectiveness levels are scarily low. The good news is insurers are recognizing their data management deficiencies and putting more emphasis on remedying them. No one reports a low number unless they're committed to raising it. I hope.
Property Casualty 360