For years, aging systems put P&C insurers at serious risk. Now that they are rectifying the problem with significant investments in core system upgrades to help with efficiency, it’s time to include a real focus back on business intelligence and analytics to drive down loss ratio. Typically neglected during all-consuming upgrade initiatives, only a solid BI and analytics strategy can deliver the insights insurers need to further mitigate risk, increase competitive advantage, and drive profitable growth.
Insurers now have a unique opportunity to dramatically improve business performance by extending the functionality of their new policy, claims, and general ledger systems with advanced analytical capabilities. Rather than simply plugging the gaps that emerged during the upgrade, they can take a collaborative, enterprise-wide approach to intelligence that will benefit both the business and IT.
But there are pitfalls to lookout for along the way. We’ve identified four worst practices to avoid in order to ensure a smooth path to data-driven decision-making. These worst practices include:
- Fearfully focusing on “go-live”, rather than paying attention to the transformational projects that will improve profitability, help innovate new products, improve agent-to-customer service, and empower the business with new insights
- Starting off with massive gaps in BI and analytics, instead of concentrating on the delivery of business-ready, self-service environments that empower business leaders to answer their own questions
- Placing priority on operational objectives, when the goal should be to provide company-wide visibility to manage profitability, risk, and performance
- Lack of an integrated vision for strategically leveraging data for new business advantage
This post is the first in a series that will delve deeper into each of these worst practices. We’ll explain why these missteps happen, and how to best prevent them. Stay tuned for next week’s post, where we’ll tackle worst practice #1: fearfully focusing on “go live”.
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