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Data and Analytics Gaps Around Customer Growing at L&A Insurers

Boston, Mass. (Sept. 12, 2017) – Strategy Meets Action (SMA), a leading insurance strategic advisory firm, has just released a new research report, Data and Analytics in L&A: Addressing Customer Requirements with New Insights. The report covers the business drivers, usage, adoption areas, success factors, and investments that L&A insurers are making in data and analytics. The research also includes a view of how InsurTech can help L&A insurers accelerate innovation and response to changing customer expectations.

“L&A insurers have always had deep actuarial skills around data and analytics,” said Karen Pauli, SMA Principal and report author. “However, changing customer expectations and the significant number of uninsureds in the US population require that traditional investments shift to business tools and skills for new insights that will lead to compelling and targeted new products and services.”

Key findings of the research include:

  • Insurers continue to invest heavily in basic BI and reporting while nominally investing in advanced analytics, data and text mining, and cognitive computing.
  • Specific uses of data and analytics are mature and have historic investment, particularly around risk assessment, but uses related to customer experience reflect growing gaps.
  • L&A insurers have hired a significant number of data scientists but lack an executive structure around enterprise analytics that can maximize business value and shift skill sets to behavioral science, social media, and big data.

The survey data shows that the advanced usage of dashboards and scorecards is low (at 38%) which indicates an attachment to proprietary spreadsheets and legacy technology, making it more difficult to glean business insights. The report offers an SMA Call to Action and SMA’s proprietary Data and Analytics Spectrum to help insurers roadmap their own data and analytics strategies and initiatives.

Insurers, solution providers, and media that are interested in learning more should contact Karen Pauli at [email protected] or 774-462-7820.

Figure 1: Adoption of BI and Analytics Solutions 

Adoption of BI and Analytics Solutions (SMA)

Adoption of BI and Analytics Solutions (SMA)

About SMA

Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com.

SOURCE: Strategy Meets Action (SMA)

 

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