Effectively using data can be a way for small companies to remain relevant amongst industry giants.
What good is data if you’re not using it? This may sound like a philosophical question but it’s increasingly vital for life and health insurance advisors and companies to utilize data properly.
Other financial institutions and even P&C insurers have shown the benefits of data when properly harnessed.
“A bank can go in right now and know exactly who their customer base is and they will send you information via the mail or when you’re on their site,” said Karen Monks, an analyst in Celent's North American insurance practice. “They know that about me because they know how old my children are and they’ve segmented the population. An insurance company can’t tell you any of that. They don’t use their data because they don’t have the ability to use their data. But the digital world is requiring for them to do that in the near future if not tomorrow.”
In P&C insurance, companies like State Farm, Geico and Progressive have been able to jump ahead in the last 15 years over the industry “are the ones that decided to invest heavily in their technical infrastructure to where they can handle large amounts of customer data and do a lot of analysis on actuarial science and underwriting efficiency,” said Berk Charlton, Global Portfolio Director in the Customer Data/Location Intelligence, Pitney Bowes Software.
It led to a great consolidation in the P&C business because all the small companies just couldn’t keep up with the amount of technical change and the amount of data.
“My prediction, and I think this is happening right now in health and life – there is so much data now to stay on top of there are a few companies that are using it very effectively – the ones that are using it effectively are getting a big edge that will be hard for others to catch up with and there will probably be a large consolidation as a result of it,” said Charlton.
Smaller companies and advisors must invest in data or risk being swept aside.
“If [smaller companies] are not investing actively in this technology they aren’t going to be able to keep up,” said Charlton. “There are a few that are using it very, very effectively but the majority are not.”
For insurers data can help efficiency and improve output.
“It’s really important because the way I look at it is the future of this world is digital. It can be anything from as basic as being able to pay your bill online, with the potential in the future of using the data that may come from these different sources to underwrite,” said Monks.
Other financial institutions and even P&C insurers have shown the benefits of data when properly harnessed.
“A bank can go in right now and know exactly who their customer base is and they will send you information via the mail or when you’re on their site,” said Karen Monks, an analyst in Celent's North American insurance practice. “They know that about me because they know how old my children are and they’ve segmented the population. An insurance company can’t tell you any of that. They don’t use their data because they don’t have the ability to use their data. But the digital world is requiring for them to do that in the near future if not tomorrow.”
In P&C insurance, companies like State Farm, Geico and Progressive have been able to jump ahead in the last 15 years over the industry “are the ones that decided to invest heavily in their technical infrastructure to where they can handle large amounts of customer data and do a lot of analysis on actuarial science and underwriting efficiency,” said Berk Charlton, Global Portfolio Director in the Customer Data/Location Intelligence, Pitney Bowes Software.
It led to a great consolidation in the P&C business because all the small companies just couldn’t keep up with the amount of technical change and the amount of data.
“My prediction, and I think this is happening right now in health and life – there is so much data now to stay on top of there are a few companies that are using it very effectively – the ones that are using it effectively are getting a big edge that will be hard for others to catch up with and there will probably be a large consolidation as a result of it,” said Charlton.
Smaller companies and advisors must invest in data or risk being swept aside.
“If [smaller companies] are not investing actively in this technology they aren’t going to be able to keep up,” said Charlton. “There are a few that are using it very, very effectively but the majority are not.”
For insurers data can help efficiency and improve output.
“It’s really important because the way I look at it is the future of this world is digital. It can be anything from as basic as being able to pay your bill online, with the potential in the future of using the data that may come from these different sources to underwrite,” said Monks.
