ECMS hosts data in insurance roundtable for senior data leaders

Introduction: The Data Journey in Insurance

Thursday 29th January saw ECMS host a roundtable discussion on The Data Journey in Insurance and AI Readiness. George Field and I were joined in our London office by 12 senior data leaders to discuss everything from their organisations’ current level of AI readiness to the common challenges they’re experiencing on their journey. Let’s take a look at some the main themes that featured in the discussion.

Data is now a front and centre function

Data still seems to be a back-office function in a lot of insurance organisations. Now the C-suite are scratching their heads on how they bring in AI, that back-office function is suddenly the most important function in the business. But despite this newfound spotlight, data teams are struggling to get buy-in from the business, particularly when it comes to helping them understand what AI tools they need and how they can benefit from them. For many insurers, educating the business on the value of data and embedding that cultural change is a crucial hurdle they need to overcome.

Solutions that fit challenges, not challenges that fit solutions

The best way to address a problem in the business is to engage the people experiencing that problem. Don’t create a solution and then try to make it fit the problem. Asking your underwriters what’s causing them pain, what’s taking them too much time and what they could resolve with more data, can prove a hugely effective way of getting their buy-in, even on something quite small.

More carrot than stick

The data governance and regulatory piece remains unclear. Data leaders who have come from other financial services businesses, where there’s a stronger audit and regulatory response, have traditionally used the proverbial stick to get the business onboard – but that stick doesn’t yet exist in insurance. Instead, using the carrot, explaining the benefits in terms of cost-savings, revenue and return on investment, can be far more encouraging for your stakeholders.

The ownership conundrum

When it comes to ownership, data is a veritable hot potato in many insurance businesses. Data teams don’t own data; the business area does. Friction occurs when the business area also wants outcomes from that data and expects the data team to provide them. When you break it down, a finance team asking the data team to format their data for them doesn’t make a lot of sense. Putting data adjacent to an individual creates ownership. Once someone realises they’re depending on data, that it affects their ability to deliver, then it becomes really important. As such, it’s a useful tool in getting buy-in across the business.

Talk the business’s language

Data leaders need to be conscious in how they communicate with the rest of the business, particularly when it comes to data terminology. Using data related jargon, including phrases like ‘data catalogue’ and ‘active metadata,’ or product names like Snowflake, can cause non-tech stakeholders to tune out. It’s not about oversimplifying; it’s about recognising your business’s level of data literacy and not assuming that everyone understands what you’re talking about.

Band-aid solutions causing long term headaches

AI and data go hand-in-hand. While a lot of tech leaders have managed to implement AI solutions, these are not always future proof. Some have improved their data platforms, bringing in modern tools, but have integrated them with legacy systems and data – which does not solve any underlying issues. While there may be a short term benefit, it’s likely to bring on a long term headache when legacy systems and data begin failing.

Designing use cases remains a mixed bag

Delegated authority has proved a reliable source of use cases for insurers, enabling a structured, secure and efficient way for AI to work on behalf of the organisation. Bordereaux, on the other hand, has proved notoriously challenging due its entrenched, spreadsheet-driven processes – and that shows no sign of changing anytime soon.

Conclusion: this stage of the data journey is about communicating value to win hearts and minds

Data and AI are still very much a journey in insurance, and organisations are at all sorts of different levels of maturity. Events like this are so important in helping data leaders stay informed on current thinking and understand their peers’ progress when it comes to AI, giving them a forum to exchange advice, challenges and opportunities. Many thanks to everyone who joined us and we’ll be sharing more insights from this event in the near future.

In the meantime, if you need advice on increasing your AI readiness or you’d like to find out more about our next roundtable discussion, please get in touch with me.