Data Discipline

Your Data is your most important asset

Despite being in the business of data, much of insurance runs off of fragmented data sets, disconnected systems, and legacy software. With how much time leading brokers spend normalizing and understanding data, it would be beneficial to take a look at the processes around this. To win today, and set yourself up for wins tomorrow, start with your data. Let’s discuss how. 

Overview

1. Your data is the key to short-term profitability and is also the foundation upon which all subsequent innovations will be built. 
2. Start with a data-driven vision for your firm, with clear goals and an understanding of where things currently stand. 
3. Look for quick wins and have a clear change management strategy.
4. Strive to foster a culture of data ownership across the whole firm.

Every piece of data you have is critical.

This includes simple details, like the spelling of the client’s name or their phone number, as well as more complex points like risk exposure or loss data. Normalizing data is the process of assessing and improving the data to ensure it is correct, current, complete, and consistent.

Let’s say your firm just acquired a small local brokerage firm. They were using a different AMS than what you are used to, and their data is partially incomplete, formatted differently than yours, and lives within different spreadsheets, emails, and paper documents. You now need to assess, clean, enhance and format the data to work with your AMS.

Data improvement and normalization is a tough process, but without making corrections early, the problem compounds. When brokerages are sold or acquired, data normalization is oftentimes looked at like a one time project. Instead, data governance must be routine and firmwide. The more proactive you can be, the better.

Some experts estimate that it costs 10 times as much to fix defective data as it does to stop it from entering your systems in the first place.

So you need to prioritize your data now, but there is already so much work to be done that it's hard to find the time to step back and think about long term innovation projects.

Short term value, long term success

Not only does data represent an opportunity to create short term growth, but it is also the foundation upon which all subsequent innovations will be built. Whether new insurtech tools emerge, you want to add new product offerings, or assess a market shift, quality data is the key to making those changes. The firms who are fastest to capitalize on new opportunities will win, and your data gives you that agility. Many brokerages are not getting the most out of their data today, and disorganized data presents a roadblock to digital transformation.

Creating a winning data governance strategy

Don't look at data normalization as a one time project. Your data governance strategy needs to be comprehensive and ongoing. Just as you need consistent diet and exercise to maintain and improve physical health, you need consistent data management and quality control to maintain and improve your data. 

Here’s how to get started.

Create a Data-Driven Vision

Improving your data governance procedures starts at the top of your organization and is a firm-level commitment to good data. Set the tone in your organization for how important data quality is across every level. Prioritize data being correct, current, complete, and consistent now so it can become accessible and integrated later. 

Start by assessing current data quality, determine what data and data sources you need to power current and future workflows, and set measurable goals for where you want to get and stay. 

First, assess where you're at. High-quality data powers connectivity, so you need to determine if your data is… correct, current, complete, and consistent.

Data quality is in worse shape than most managers realize

In a study involving 75 executives, only 3% found that their departments fell within the minimum acceptable range of 97 or more correct records out of 100. 

Friday afternoon data assessment:

Take a look at the last 100 customer orders and identify how many records are error-free.

Start Small and Manage Change

After you have assessed your data, you will have identified some areas for improvement. Look for the low hanging fruit for some quick wins. While it can be exciting to embark on a new strategic initiative, be careful not to overwhelm your team; look for small wins with both immediate and long term value first.

These small wins could be things like correcting client names, phone numbers, or adding a process for double checking data entries for accuracy. 

Celebrate these small wins and continue setting the tone for how important data governance is firmwide.

When you are working on quality data entry, think also about what data you might need in the future- not just now. This will help you identify new upselling opportunities, save time rekeying data, reduce errors, and improve the efficiency of your servicing teams. All of these add up to more revenue and fewer expenses.

Foster a culture of data governance: