The report, “Business Intelligence in Insurance: Current State, Challenges, and Expectations,” queried 75 insurance CIOs who are members of Novarica’s Insurance Technology Research Council about the challenges they face leveraging business intelligence.
Survey results indicated that the primary issues all surround data quality, with 50 percent of respondents citing significant challenges with data inconsistency (data is in different forms) and more than 60 percent indicating significant challenges concerning source system data quality (the information is inaccurate or invalid).
“As BI capabilities expand, carriers acknowledge that Master Data Management principles are important, but relatively few have them in place or have prioritized them for the short term,” the report, authored by Novarica Principal Martina Conlon and Analyst Kimberly Markel, stated. “The challenges of normalizing enterprise data and motivating business user change are significant, but we believe that insurers who do develop strong business intelligence capabilities and act upon the insights revealed will have a significant competitive advantage in the difficult market ahead.”
This originally appeared on Insurance Networking News.
Bill Kenealy is a senior editor at Insurance Networking.
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