In today’s digital age, data has become an essential element of the Insurance Industry. To thrive in this data-driven landscape, insurers should adopt innovative approaches to harness the power of data. One such approach is implementing data fabric, a comprehensive architecture that enables seamless data integration, management, and accessibility.
In this article, we will explore how data fabric has the potential to revolutionize the insurance sector.
The Challenges of Data Management
Insurance companies are facing significant challenges in effectively managing their data. Firstly, the insurance sector generates vast amounts of data from various sources, including customer information, policy details, claims data, and risk assessments. Handling and processing such massive volumes of data can be overwhelming without proper infrastructure and tools in place.
Secondly, insurance companies often struggle with data silos, where data is scattered across different departments and systems, making it difficult to gain a comprehensive view of customers and their interactions. This fragmentation hinders the ability to provide personalized experiences, optimize processes, and get the most out of open insurance partnerships from an embedded insurance perspective.
Additionally, the insurance industry experiences ongoing M&A activities and corporate restructuring, further augmenting the challenges posed by legacy data architecture during the consolidation of post-merger data systems.
Lastly, ensuring data quality and integrity is a constant concern, as inaccurate or incomplete data can lead to erroneous risk assessments, inadequate pricing, and poor customer service.
Understanding Data Fabric and its Relevance to Insurance
Data fabric is an architectural framework that enables organizations to integrate, manage, and access data from disparate sources in a unified and efficient manner. It acts as a cohesive layer that connects various data systems, including legacy infrastructure, cloud platforms, and external data sources. By breaking down data silos and streamlining data integration, insurers gain a holistic view of their operations, leading to improved decision-making and enhanced customer experiences.
Ultimately, by leveraging a robust data fabric solution, insurance companies can create their own Digital Integration Hub (DIH). The DIH is an event‑driven architecture that collects data from any existing system (e.g., Life System, Non-life System, Claims Management System) and organizes them according to the company’s business needs. This builds a single point of truth to keep data flow consistent and updated in real-time 24/7.
Benefits of Data Fabric and DIH Architectures
Implementing a Digital Integration Hub architecture offers a multitude of benefits for insurance companies. In particular, a data fabric solution:
- Enables the seamless integration of disparate data sources, breaking down the silos that often exist within the organization. By creating a unified view of data, insurance companies can gain a comprehensive understanding of their customers, policies, claims, and risks, empowering them to deliver personalized experiences and tailored insurance products.
- Improves data quality and integrity by implementing robust data governance and quality controls. This ensures that accurate and reliable data is available for analysis, risk assessments, and decision-making processes.
- Allows real-time data access and analysis, allowing insurance companies to respond swiftly to changing market conditions and customer needs.
- Empowers company to offload their legacy systems from excessive workloads and rely on near real-time data to enable valuable use cases like customer digital single registry or omnichannel customer care.
- Enhances data security and compliance by centralizing data management, implementing security measures, and ensuring compliance with data privacy regulations.
Overall, data fabric empowers insurance companies to harness the full potential of their data, driving operational efficiency, improving customer experiences, and gaining a competitive advantage in the rapidly evolving insurance landscape. Eventually, it allows traditional companies to be at the forefront of innovation by building their own Open Insurance Platform to serve all the company’s digital initiatives.
A Digital Integration Hub Success Story in the Insurance Sector
Several insurance companies have already embraced data fabric solutions and experienced significant benefits. For instance, Helvetia Assicurazioni leveraged Mia-Platform Fast Data to create a unique contact center to manage all communications with its customer base. The company used to rely on multiple contact centers for each of its business lines with non-updated information, the inability to visualize the position of a user in a single place, and limited data availability with consequent problems on scalability and data integration. Thanks to Mia-Platform Fast Data the company has been able to aggregate all the relevant information into a Customer Single View that can be easily queried by APIs. This significantly improved information accessibility and enabled unique, consolidated, and updated data views in real-time.
Once collected in streams, the same data have been aggregated in different ways for different business needs. This led to the creation of additional Single Views, such as:
- The Policy-centric Single View, containing all the details of a single policy (roles, company, protected assets, selling point, payments and movements, etc.);
- The Claim-centric Single View, containing all the details related to a specific claim (open and close date, claim type, claiming customer, etc.);
- The Agency-centric Single View, containing all the information related to a particular agency (branch name, anagraphic, geographic location, agents, etc.).
Today, the platform integrates over 10 systems of record and serves all the company’s B2C, B2B, and internal channels.
In an increasingly data-driven insurance industry, data fabric offers a comprehensive solution to address the complexities of data integration, management, and accessibility. By implementing a data fabric architecture, insurers can unlock the full potential of their data, drive operational efficiency, foster innovation, and enhance customer experiences. As insurance companies look to the future, embracing data fabric will be crucial to stay competitive and thrive in an ever-evolving landscape. Together with cloud-native technology and Composability, data fabric is one of the main solutions to future-proofing the Insurance Industry.
To deepen your understanding of how Data Fabric enables valuable use cases in the insurance industry, download the free white paper about Real-time data and Single Views for an Omnichannle Customer Care.