Digital Age Shift Requires Data Mastery by Insurers: Majesco Report
The digital age has ushered in dramatic changes in the types and volumes of data available as well as the tools and techniques to extract insight and real business value from that data, according to a new thought leadership report published by Majesco.
The report, Winning in a New Age of Insurance: Insurance Moneyball, notes that while insurers were once leaders in data-driven decisions, many find themselves behind the curve—aware of the promise and potential of these advances, but stuck in their traditional methods made up of silos of internal data and dated analytic techniques suitable for limited, repeated decisions but not capable of making new discoveries, optimizing business decisions or uncovering strategic opportunities.
The report observes the similarity to the Oakland A’s non-traditional, data-driven baseball success in the book Moneyball: The Art of Winning an Unfair Game, by Michael Lewis. Similar to insurers stuck in centuries-old business assumptions, Moneyball shows that the centuries-old collective wisdom of baseball insiders, including players, managers, coaches, scouts, and the executive office was subjective, flawed and did not keep up with a 21st century reality. Insurers who stick to the traditional, pre-digital age formula of relying on internal, historical data used only for pricing and underwriting, will put their businesses at risk … both in terms of retaining profitable customers and capturing new markets and customers.
Director, Market Research and Content Development