At a recent roundtable event hosted in partnership with Insurance Post, we met with a number of c-suite insurance executives to discuss the pressures that increasing regulatory requirements are placing on the industry and how best to overcome the numerous challenges these create. This conversation is one being replicated across the industry as insurers face pressure to comply with new regulations at every turn.
Most recently, the industry faced the challenge of meeting the EU’s General Data Protection Regulation (GDPR) requirements, which came into play in May of 2018 and placed stringent regulations on the handling of customer data. Though the deadline for GDPR has passed, there is still no time to pause for thought as the upcoming International Financial Reporting Standard, IFRS 17, looms on the horizon for early 2022.
Meeting New Regulatory Requirements Requires Data Agility
New regulations undoubtedly present innumerable challenges for any industry, not least of all because these lengthy multi-million-pound projects often take years to complete and all too frequently fail mid-project as technology outpaces the changes in regulations along the way. In this respect, meeting regulatory requirements requires an agile approach. It is not enough to simply ensure compliance and meet the requirements of the here and now. Insurers should be implementing smart solutions that can support the wider business and deliver value for years to come.
Fortunately, at the heart of every insurance business, is a precious commodity that holds the key to regulation compliance as well as digital transformation – data. This data has always existed, but what has changed in recent years is that powerful and innovative technology now exists that allows a business to mine the incredible value it holds. In this way, insurers need to consider what they can do with their data beyond regulatory reporting and look at what added value can be gained by investing in the right technology to meet regulatory requirements and transform their businesses as a whole.
Integrated, linked and properly governed and secured data can power a variety of use cases across the business, transforming the manner in which insurers price policies, process claims and promote their services. What’s more, effective data integration can allow insurers to obtain a single customer view and more effectively automate processes so claims can be managed more efficiently and overall operational efficiency is increased.
Address Growing Regulatory Requirements as Part of a Broader, Data-Driven, Digital Transformation Strategy
From our recent discussion, one consensus became clear – there needs to be a culture shift and a more pragmatic, iterative approach adopted by insurance companies when it comes to regulatory reporting. As part of this, insurers need to view data as an asset and something that supports the wider business, rather than something that’s owned, managed and stored within the IT department. We were pleased to hear that this mentality is becoming more commonplace. However, for transformative change to truly take place, businesses will need to come together to highlight use cases for how insights gained from data in other areas of the company, such as marketing, can further drive ROI.
MarkLogic works with organisations across the insurance sector, helping them to implement innovative technology that can unlock the value of all the information that exists across the business. By adopting a next-generation, data-management platform insurers can integrate, curate, secure and analyse disparate data from across the business quickly and intelligently to drive innovation and agility.