The Data Solution Selection Conundrum, Part 2

The Data Solution Selection Conundrum, Part 2

Satyen Paneri

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Data Solution Selection Conundrum

To improve outcomes of core and data transformation initiatives, P/C insurers can benefit from investing in an insurance data solution from the core systems provider to serve as an intermediary between the core operational systems and the data warehouse, business intelligence, and advanced analytical systems.

The right insurance data solution will:

Reduce project risk: Decoupling of data producers and data consumers reduces the dependencies in the core systems and data transformation projects. An insurance data solution will include out-of-the-box best practices such as reference data management, managing late-arriving dimensionality, out-of-sequence endorsements, specialized data commit-n-rollback, and reconciliations. Embedded data controls and audit management capabilities help ensure data consistency across all systems. The technology stack is streamlined, enabling easy addition (or retirement) of new systems and reduction in the integration efforts. As a result, valuable IT resources are freed up to provide value-added services to business. Costs go down over time with legacy data migration and systems retirement.

Improve business insight: To realize true value from data, core systems transactional data needs to be re-organized and merged with other internal and external data for analytical processing. The data models of core systems (such as policy administration systems) can be quite complex when supporting multiple lines of business. The volume and velocity of data generated can vary by type of system and nature of processing (such as billing). Performance can be a key barrier in translating data for analytical purposes. An insurance data solution enables performant data extraction, translation, and storage from core systems; conformant consolidation with legacy systems data; and publication to multiple downstream systems. An insurance data solution implements best practices in data persistence, conformance, and integrity. An insurance data solution from a core systems provider is designed to work together and enable data consumers to consume data with confidence. As a result, users can make timely decisions to improve business performance. Business agility improves with accelerated speed-to-market – faster introduction of new products, reduction in underwriting risk, proactive fraud detection, and improved customer service.

Achieve long-term sustainability: Strategic investment in an insurance data solution not only provides value today but also becomes a foundational asset for business intelligence and advanced analytics. Success in solving today’s problems and evolving to meet future business needs requires more than just a product. An insurance data solution from a core systems provider enables long-term sustainability by providing a consistent architecture, data model, process integration, and a common user interface. The core and data solutions benefit from faster innovations from the single vendor as well as from synchronized product upgrades.

Life is nothing but the outcome of our choices. An insurance data solution from a core systems provider will significantly improve business transformation outcomes for P/C insurers. You must choose, but choose wisely.