Slow adoption of data strategies offers competitors opportunities

With many insurers still in the early stages of their data management strategies, competitors have an opportunity to gain a competitive advantage, according to Strategy Meets Action (SMA).

The analyst said data was the ‘new currency’ of the digital market and insurers must embrace a data-driven strategy to unlock business potential.

“As the dawn of a new industry and the Next-Gen Insurer emerge and are accelerated by an explosion of new data, having an enterprise data management strategy that provides a foundation and path for maturity has never been more critical” said Denise Garth, partner at SMA.

“The future market leaders and winners will be those that, at a minimum, are at an organised level and have plans to move upward to the strategic or transformative and innovative levels. Unfortunately, today’s mainstreamers can become tomorrow’s laggards if they fail to keep up with the pace of change brought about by the influencers within and outside the industry.”

An SMA survey of 145 insurance professionals in North America found that 55% of P&C insurers are still in the early stages of their data management strategy. This compares to 34% of L&A insurers – this insurance sector was also much more likely to progress to an advance level (26%).