Commissioned by Equisoft as part of a new global study, this North American research will help carriers to plan, prioritize and make investment decisions on how to unlock the strategic value of their data to create new opportunities for growth, process optimization and customer experience improvement
Montreal, QC (Sept. 16, 2021) – In a new report commissioned by Equisoft, global research firm Celent presents the findings of an executive study aiming to understand how North American insurers are actually creating value from their data, and how they are improving their abilities to expose and use their data for more than administrative purposes, while overcoming the key risks to realizing that value.
The research revealed that:
- While giving customers more of what they want matters, knowing how to price for it optimizes business when things scale up;
- 91% of carriers surveyed are prioritizing the use of data and analytic technologies to inform decisions on pricing;
- The building of actuarial pricing models is where they are finding that data is creating the most value for their organizations.
This research was conducted with CIOs and other executives at large- and mid-sized North American carriers offering individual life, annuities, as well as group and voluntary insurance products.
“The volume of data collected by insurers is increasing every second and deriving value from that data has become a hot topic and one that many carriers are grappling with,” said Mark DePhillips, Senior Vice President, USA at Equisoft. “Our goal with this study is to provide insurers with practical insights on what their peers are doing with their data today, and help uncover what are the quick wins, how they can actually get value from their data right now.”
As reported by Celent, higher customer expectations for modern digital experiences are segmenting the marketplace between savvy companies and lagging companies, creating a strategic imperative for insurers to become more data-driven and to generate more value from their data through digitalization, connectivity, analytics and automation.
“Companies of all sizes are placing their greatest priority on data management, business intelligence, and Analytics/AI,” said Marty Ellingsworth, Senior Analyst, Data and Advanced Analytics, Americas at Celent. “They have more data than ever, from extensive digital transformations and integrations with various data sources, and they understand that turning this data into more valuable assets is key to sustainable competitiveness where price, ease of doing business and peace of mind matter.”
As one insurance executive revealed in the report, “No one is in charge of data quality. We have pockets of greatness surrounded by swampy moats. We put it in the cloud and are sorting it all out there.”
Click here to access the full report.
In addition to the North American life and annuity market, this research will also be conducted in LATAM and APAC, and a global report comparing results among regions will be released by Celent in early 2022.
Founded in 1994, Equisoft is a global provider of advanced insurance and investment digital solutions. Recognized as a valued partner by over 250 of the world’s leading financial institutions in 16 countries, Equisoft offers innovative front-end applications, extensive back-office services and unique data migration expertise. The firm’s flagship products include a SaaS policy administration solution, CRM, financial needs analysis, financial planning, asset allocation, fund and portfolio analysis, quotes and illustrations, electronic application, agency management systems, as well as customer, agent and broker portals. Equisoft is also Oracle’s largest and most experienced partner for the OIPA platform. With its business-driven approach, deep industry knowledge, innovative technology, and more than 800 experts based in Canada, USA, UK, Chile, Colombia, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption. For more information, visit equisoft.com.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies (NYSE: MMC). For more information, visit celent.com.
Source: EquisoftTags: analytics, Big Data, carriers, Celent, data, Equisoft, insurance pricing, priorities