Master Data Management for Insurers: Mastering the Unknown Unknowns

As insurers seek to become more customer-centric and overcome challenges posed by siloed legacy applications, MDM is gaining traction.

Boston, March 2, 2012 – A new report from Aite Group sizes the global insurance marketplace for master data management (MDM) solutions and services, provides a high-level overview of MDM and its major variants, and profiles and evaluates major vendors that offer solutions in the insurance marketplace. Based on Aite Group interviews with roughly 30 insurance participants in the MDM ecosystem´┐Żincluding insurers that have undertaken MDM projects, insurers that have evaluated them, and solutions vendors´┐Żthe report presents critical success factors that exist for MDM implementations.

When all is said and done, most of the thorniest problems faced by insurers worldwide can be traced back to the multiple legacy core systems that persist within insurers’ walls. Master data management offers insurers an approach to reconciling the differences between disparate source systems and offers organizations an environment within which they might view and manage a “golden copy” of enterprise data. MDM platforms promise to manage any type or domain of data that can exist plurally and make it singular. As with any major IT project that cuts across functional boundaries within organizations, MDM is much more easily said than done. Because of MDM’s potential benefit to the industry, however, Aite Group predicts that the total market for MDM solutions and services sold to insurers will grow rapidly between 2011 and 2014.

“For all too long, insurance has been ruled by individual policies, making a holistic view of a customer relationship difficult, if not impossible,” says Clark Troy, research director with Aite Group and author of this report. “Insurers have been aware of these limitations, but the need to transition to a more customer-centric way of doing business has reached a boiling point in recent years. ‘Cross-sell’ and ‘up-sell’ are the words on everyone’s lips, but they are nothing more than words for organizations that don’t know their customers.”

The report profiles MDM solutions available from IBM, Informatica, Kalido, Microsoft, Profisee, SunGard, Talend, and Trillium Software.

This 35-page Impact Report contains seven figures. Clients of Aite Group’s Life Insurance or Property & Casualty Insurance services can download the report by clicking on the icon to the right.

About Aite Group

Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. It was founded by leading industry experts in Banking and Securities & Investments. Aite Group brings together a team of business strategy, technology and regulatory experts to deliver comprehensive, timely, and actionable advice to financial institutions and technology vendors. It seeks to become a true partner, advisor, and catalyst by exchanging ideas and challenging basic assumptions to ensure that our clients always stay one step ahead of the competition.