Marketing TeamOct 29 2018 in Blogs
Data Warehousing: The informed decision making
In the times that we’re living in, data is information, and information is power. The rapid pace of technological development and the age of the Internet have made it possible for companies to capture user data from multiple channels. While all companies, across sectors, benefit from capturing and creating large repositories of user data, insurers in particular can benefit greatly if these gold mines of user information can be analysed to understand trends in user behaviours and create or augment focus groups in the market.
But all of this can be possible only when data is centralised and statistically analysed. To make this possible, more and more insurers are becoming dependent on sophisticated data warehousing tools that are equipped to handle data and perform stringent and varied analyses on it.
While data has traditionally been captured and stored in the transactional databases maintained by all insurance companies, these databases are not equipped to provide any real value when it comes to understanding emerging trends and creating products that respond to these trends because they contain only raw data and slow down the processing speed, and they are not designed for the consistent representation of data, making it difficult to create and analyse reports from them.
A data warehouse is a centralised and historical view of the data of all the users of an insurance company. In addition to the creation of more relevant insurance products, continuous analysis of operational and informational data of users can help insurers address security and compliance issues before they can create any real problems for the company or the consumers.
For all these reasons, insurance companies are increasingly investing in data warehousing tools with statistical engines to gather information and draw useful marketing conclusions.
Another major change in the way that the insurance industries around the world function that has made data warehousing imperative for any insurer that seeks to survive in the long term is the central role that the finance teams within insurance companies are forced to take on. Due to a growing and constantly changing number of statutory reporting requirements that insurers must comply with within home markets as well new geographies, thanks to new avenues for offering insurance that have emerged with the growth of technology, the finance teams are forced to produce complex reports in pressing timelines. More importantly, there is increased scrutiny on these reports to pinpoint discrepancies of misrepresentations. Despite the increasing workloads, in most insurance organisations, systems have not been upgraded to provide adequate support to the finance teams.
This needs to change. The new business environment demands that insurers overhaul the system for the flow and processing of financial data across the organisation.
Data warehousing makes it possible for insurance firms to access data and create complex reports at a much faster rate, and with greater efficiency. It eliminates the tedious process of manually searching for data and painstakingly collating reports after trawling through multiple database on multiple systems. Instead, with the help of data warehousing tools, all the large volumes of information from all possible sources is collated to create one comprehensive and coherent overview that can be studied and understood by various teams, which will in turn help them perform their functions better. In addition to making processes more efficient, data warehousing significantly reduces the margin of error, saving insurers from devastating potential losses in the long term.
To succeed in the changing landscape of the insurance industry, it is imperative that insurers invest in data warehousing tools that make it possible for the company to seamlessly provide clear, consolidated and accurate data to all its departments.
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