While competitive pressures mean that insurers need to take advantage of the data at their disposal, it doesn’t mean that they can’t simultaneously build trust among consumers and protect their reputation. Security and privacy concerns often limit the extent to how companies collect and use data, which means firms need to focus on building privacy requirements into the lifeblood of how they operate.
A recent Insurance Governance Leadership Network meeting sought to explore how companies can derive value from data while safeguarding consumer rights, with three key themes emerging:
• Big data helps generate business opportunities.
• Data governance requires executive-level attention.
• Privacy challenges often impede upon the efforts of insurers to maximise value from data.
There are several key areas where insurers can use big data and technology to not only maximise profitability but to also improve the customer experience. With customisation, ease of use and personally tailored solutions and rewards, customers are more likely to provide information they would otherwise be reluctant to share.
Technology and targeted products
Tech recruitment is poised to play an important role in terms of finding the contingent workforce to help target products to existing customers. For example, if a person buys a specific life insurance policy, technology can help insurers to understand what else they might find useful, as well as identifying anything historical from their existing product group that might be of benefit to individual customers.
It’s been over a year since the General Data Protection Regulation came into force across the EU. This places greater organisational responsibilities on companies, and carefully scrutinises the way they process and store data. Many contractors have had their work cut out ensuring that insurers are GDPR-compliant, and with increasing scrutiny, security looks to be an ongoing concern when it comes to maintaining the trust of consumers.
While insurers understand the opportunities poised by data collection, it is important for them to understand that customer expectations have become heightened as a result of increased data regulation. This means that insurers need to have the right people, systems and governance in place to meet stringent standards and ensure data privacy is at the forefront of all business decisions. Ultimately, this means insurance companies need tech recruitment expertise more than ever.