Automated Data Management Reduces Risk in Insurance Industry
Brett Hansen highlights how data automation enables rapid analysis and makes business more efficient. Data management is a critical part of the insurance industry and the very foundation of insurance policies, but many companies are missing out on the benefits of automation. These companies manage high volumes of data using manual methods or cumbersome technology. Automated data management will help insurance companies reduce risk, make better decisions, manage higher volumes of data effectively, and reduce costs overall. Here’s why automated data management is the future of the insurance industry.
While insurance customers have largely adopted a data-first approach, insurance providers are lagging. Bain & Company recently wrote on the “digital reckoning” facing insurance companies if they don’t update and adapt to consumers’ expectations of data-driven experiences. If they do not update their strategies and implement a modern data management process, they will lose customers, face more significant risks, and be replaced by more innovative insurance providers.
Data automation enables rapid analysis and makes business more efficient - To do their jobs, stakeholders in the insurance sector must collect, manage, and act on large data sets. Automated data management can provide the same essential information processing without labor hours, freeing workers to do other necessary tasks. In an effort to refine data communication, the American Association of Insurance Services (AAIS) looked to Semarchy xDM to provide a data management, integration, and versioning system that could connect to the organization’s data lake, data science, back-end systems, and other business tools.
Automated data management reduces costs - When we think of risks in insurance, we usually think of personal, property, or liability risks. These are certainly concerns of insurance companies, but there’s one greater risk that has a considerable effect on how the insurance industry functions: the business success of an individual insurance company or organization. Insurance companies cannot function well without properly managing business assets—time, money, resources, data, etc.
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