Digital Transformation
2 Minute Read
Date Published:
By: Dave Chapman
Digital Transformation
2 Minute Read
Date Published:
By: Dave Chapman
Actionable insight is a term used in data analytics for information that can be acted upon or data that gives enough insight into the future that the course taken becomes clear for decision-makers. In short, actionable insights provides enough data for managers and organisations to make more informed decisions.
Data is only valuable if you can render it into actionable insights. Even if your brokerage is sitting on a mountain of data, it’s worthless unless you have the right tools to translate it into reliable, actionable insights.
The Insurance Times Digital Adoption Report, produced in association with Applied Systems, surveyed brokers across the UK on their adopted technologies and how well they use them.
Tom Needs, CEO of Applied Systems Europe, said, “I am not surprised at the number of brokers who felt they are using data more effectively has risen. They are finally waking up to the benefits hidden in their data on their customers around their buying patterns. He continued, “However, knowing what to do with it when they have the data is where some struggle. With data, it is very much a pyramid; you have the data, which is turned into information, which is turned into knowledge and then wisdom. At present, many brokers are at the data and information stage.”
Data insights generated from broker management systems show a slight increase in use, with 64% of brokers able to view, monitor, track and forecast business opportunities. Regardless of size or revenue, many brokers still need the advantage of increased visibility and data-driven insights that data analytics tools provide. With more insights into client policy details, preferences and geography, brokers can focus on the most profitable growth areas, build stronger relationships with the most responsive insurer partners, and deliver higher customer service.
While still a minority, many brokers seek better insights from their data to understand customers. This includes investing in intelligence tools and using AI. These trends could be reflective of a desire to improve customer retention at a time when policyholders are proving ‘stickier,’ and there is, therefore, less churn in the business.
Data-driven decision-making uses data to enhance decision-making processes and validate a course of action before committing to it. Purchasing an item on Amazon is an excellent example of website data-driven decision-making. They use data to decide which products they recommend to you based on your prior purchases and patterns in search behaviour. Rather than randomly suggesting items, Amazon uses data analytics and machine learning to drive its recommendations.
Insurance is an industry generally known for the slow adoption of technology. However, when the pandemic hit, brokers had no choice but to put their digital transformation into turbo drive. While the pandemic may have accelerated digital tech adoption, the demand for simple, digital experiences isn’t going away. Digital transformation and delivering the ideal customer and employee experience will be the differentiating factors for the insurance industry in 2023. And I’m very excited about that.
Get your copy of the Insurance Times 2022 Digital Transformation Report
Chief Revenue Officer, Applied Systems Europe
Dave Chapman, leads Applied’s Sales, Marketing and Services teams in Europe and is responsible for driving growth in the UK and Ireland. Dave has worked in the insurance technology industry for over 20 years and has been instrumental in bringing new technology and innovation to brokers and the broader the insurance sector. Having begun his career with SSP, where he was responsible for the Broker business and all client relationships throughout Europe, the U.S. and the Caribbean, Dave brings extensive industry knowledge and technology expertise to the insurance industry.
