Gaining a competitive edge with data

As insurance leaders face an increasingly complex market, understanding the strategic use of data becomes crucial.

In an exclusive interview with Intelligent Insurer, Bill Devine, insurance industry data expert and independent consultant, and Adil Ilyas, leader in P&C insurance at Genpact, spoke about how leading insurers are using data not only to survive but also to thrive in today's competitive landscape.

"Being a data-centric organization means leveraging the vast amounts of data generated daily to drive smarter underwriting, risk selection, and claims management," said Ilyas, who has spent the last 25 years with Genpact working with global insurance companies.

According to Ilyas, there has been a profound shift from data collection to data-driven decision-making.

Devine emphasized: "A truly data-driven insurer operates with a core belief that facts matter, and decision-making needs to be based on the best facts at all times."

For insurers, this means integrating data into every facet of their operations.

"In my experience, a data-driven insurer recognizes that data isn't just for the specialists but is everyone's responsibility," Ilyas added.

"Organizations achieving data excellence foster a culture where data is thought about in all phases of what's going on inside the organization, ensuring that data informs every decision from underwriting and claims processing to customer service and strategic planning," Devine explained.

In the competitive world of insurance, having a data advantage can be a game changer. "I had the fortune to spend the last few decades working with many insurance organizations where data was an obsession. One of the things that these carriers often pointed to as a major competitive advantage was the volume of data and the ability to use data at the point of decision," Devine explained.

"This use of data improves decision-making and allows for better customer service."

Ilyas continued on this theme, stating: "Data-driven organizations use their data to underwrite more intelligently, select the right risks, and handle claims more effectively."

By analyzing vast amounts of data, insurers can identify patterns and trends that provide succinct insights into risk management and operational efficiency.

"The entire world is generating data at lightning speed every single second, and what differentiates a smart organization today is leveraging the right models and frameworks and the correct understanding of that data to handle the business in the best way possible.

"Smarter underwriting decisions, more accurate pricing models, and more efficient claims handling can only be a good thing, and by continuously refining their data strategies, insurers can stay ahead of competitors who might not be as data-focused", he added.

Transitioning to a data-driven model is not without its challenges. "Organizations often face significant legacy issues, such as outdated technology and redundant product lines, which complicate data integration," said Devine.

Addressing these matters is crucial for unlocking the full potential of data. "The real challenge is not just collecting data but ensuring it is accurate and accessible when needed," said Ilyas.

He emphasized that data must be in the right place at the right time to be useful, which means overcoming legacy challenges and ensuring that data management practices are streamlined and effective. Legacy redundancies, whether in technology or products, make it difficult to create clean data environments.

One key strategy in this regard, according to Devine, is to "identify great partners to help with data transformation."

"Few organizations can tackle big data challenges alone. Having the right partners and specialists can make a significant difference. Great partners that you can rely on and who can deliver success for you are essential," he said.

Collaborating with experts and leveraging their knowledge and tools can help insurers navigate the complexities of data integration and transformation.

Devine and Ilyas offered several practical insights for reinsurance leaders looking to enhance their data strategies.

"Start with education and building a strong foundational understanding of data fundamentals," Devine suggested.

This involves educating the executive team and ensuring that all levels of the organization are aligned with data goals and practices.

Ilyas emphasized the importance of "creating a data-driven culture within the organization."

"This culture should span from data generation and consumption to the application of insights. Everyone in the organization should view data as a key asset and take responsibility for its quality and use," he said.

Devine advised focusing on "removing data silos and integrating data across different departments."

"This integration ensures that data flows seamlessly throughout the organization, enabling more cohesive and informed decision-making," he said.

As the insurance industry continues to evolve, the role of data will become even more significant.

"The future of insurance will be increasingly data-driven, with new technologies and analytics transforming how insurers operate," Devine noted.

Embracing data-driven strategies will be essential for staying competitive in this dynamic environment.

"Data is the holy grail of all the emerging technologies. Organizations cannot succeed with the application of artificial intelligence (AI) technologies, including generative AI, without their data being in the right place at the right time for all functions to use," Ilyas observed.

He stressed that insurers must focus on building robust data foundations to leverage these technologies and drive innovation effectively.

For Genpact, data is not just a tool but a strategic asset that provides significant advantages in the insurance industry.

"The key to leveraging data effectively lies in treating it as a core asset and ensuring that it informs every aspect of the business," Devine concluded.

The article first appeared in Intelligent Insurer. Michele Bacchus, associate editor at Intelligent Insurer, interviewed Adil Ilyas, global business leader for P&C insurance at Genpact, and Bill Devine, independent consultant and insurance industry data expert.