When they analyse this more deeply most insurers find around 80% of data is inaccessible. Especially the larger insurers formed by many M&A initiatives.
Data is stored and hidden in data and system silos; often 15, 30 or even more legacy systems. Therefore decisions are made from incomplete data and much the poorer for that. This is before you consider external data.
"As for what some of these “non-traditional” data sources that businesses are having trouble linking to, the most prevalent is any external data, including government data or other third-party data — and 88% of survey respondents deemed external data as “critical” or “somewhat important” to their business. Similarly high importance was given to location data, unstructured text-based data, and device or IoT data. With all these different data sources contributing very valuable yet very different information, the need to allow access to all of them simultaneously is becoming more and more pressing."
Philip Mierswa Research Analyst at Aberdeen
It must be a priority to surface, join and analyse these data sources. Start with the internal data and in parallel plan to analyse external data.
360Retrieve is increasingly being leveraged by insurers wanting to benefit from the untapped value in this data.
Data Integration drives results
Mierswa shows how.
"So, what’s the end result of a company adopting various data integration strategies? The numbers show a very positive result. Companies using data integration reported a 9% increase in operating profit year-over-year, compared to just a 4.6% increase for companies with no DI. Furthermore, companies using DI saw an 8.1% increase in their customer base on average, compared to only a 5.2% increase for non-DI companies. By multiple metrics, companies using DI strategies outperformed their rivals that were lagging behind in proper data integration."
Don't be left behind- analyse that data. Test 360Retrieve for data integration, Fraud Detection & Prevention, PI Analytics and more.
Many companies are using increasing amounts of non-traditional data these days. According to our findings, the average number of unique data sources companies are in control of these days is 35. Even more surprising, is that 30% of those data sources were called “inaccessible” by the people that needed to work with the data. Clearly, companies need fast access to all their available data to operate at peak efficiency.