Legacy IT Systems, Inefficient Processes Hold Back the Insurance Industry

New research reveals 90% of insurance organisations lack a single
unified view of their customers

LONDON–(BUSINESS WIRE)–MarkLogic
Corporation
, the next generation data platform provider for
simplifying data integration, today released a report revealing that
complex legacy IT systems and inefficient processes are slowing the
efforts of insurers to digitally transform and achieve a single customer
view, which is critical to business. The report on the global insurance
industry is based on research conducted by Research
in Insurance
, a specialist market intelligence provider to the
insurance industry.

The report explores the challenges insurance companies face as they
battle to deliver value to their customers. The research, gathered from
in-depth interviews with over 200 senior professionals, reveals a
disparity between what insurers want and what they can achieve with
existing systems and processes. Nine in ten survey respondents do not
have a single unified view of their customers, yet 70% say that
achieving a “SCV” is either critical or very important to their business.

Many insurers still rely on complex, legacy IT systems that keep large
amounts of big data siloed across the organisation, thereby preventing
them from gaining actionable customer insights. Over half (55%) of
insurers surveyed believe the complexity of their systems is the primary
barrier to achieving a SCV. More than a third (34%) say the inability to
integrate data across the organisation prevents them from achieving a
SCV.

“Insurance companies have an enormous amount of data available to them;
in many ways it is their most important asset – but only if they can
access it and leverage it across the enterprise,” says Steve Forcash,
Chief Strategy Officer for Insurance at MarkLogic. “This research
highlights the enormous challenges insurers face in extracting data from
multiple, siloed sources and using this to enhance efficiencies and
improve customer experience in all areas, from pricing and underwriting
to claims.”

More than half of insurance professionals recognize the benefits of
achieving a SCV, with 56% agreeing it will bring better customer
satisfaction and 53% saying it will improve customer loyalty and
retention, the research shows. Meanwhile, 43% of survey respondents
believe achieving a SCV will improve fraud detection, and over a third
(39%) say it will reduce overall risk.

“In order to differentiate in an increasingly competitive industry,
insurance companies must become more customer-oriented,” Forcash says.
“Other industries, plus InsureTechs, have raised the bar, and insurers
need to respond. This means adopting the innovative technologies that
will allow them to achieve a single customer view by integrating data
stuck in silos and legacy systems and becoming truly customer focused.”

Download the full report, “Insurance
360: The Current State of Big Data-Driven Transformation in the
Insurance Industry
.”

Notes to Editors

Research in Insurance (Rii) conducted this research in two stages.
During the qualitative stage, discussions were conducted by phone and
face-to-face with global data directors, CIOs, claims directors and
underwriting directors. A total of 23 in-depth interviews were held,
broken down as follows:

  • 12 with those ultimately responsible for the management of data
    (including Global Data Directors, CTOs, CIOs and Chief Data Officers);
  • 6 with Claims Directors (including senior decision makers within
    Claims Operations)
  • 5 with Underwriting/Risk Directors (including Chief Underwriting
    Officers and senior decision makers in underwriting/risk management)

During the quantitative stage, an online survey was conducted with
responses received from 188 individuals working within Claims,
Underwriting, Data, Risk Management and Customer management departments
at insurance companies broken down as follows:

  • Underwriting/Risk: 72
  • Claims: 71
  • Data (Data Processing/ Data Technology/ Data Architecture): 40
  • Customer management: 5

Geographically, the breakdown was as follows:

  • North America – 51%
  • EMEA – 35%
  • Global (all regions) – 16%
  • APAC – 3%
  • LATAM – 1%

About MarkLogic

Data integration is one of the most complex IT challenges, and our
mission is to simplify it. The MarkLogic® Data Hub is a
highly differentiated data platform that eliminates friction at every
step of the data integration process, enabling organizations to achieve
a 360º view faster than ever. By simplifying data integration, MarkLogic
helps organizations gain agility, lower IT costs, and safely share their
data.

Organizations around the world trust MarkLogic to handle their
mission-critical data, including 6 of the top 10 banks, 5 of the top 10
global pharmaceutical companies, 6 of the top 10 publishers, 9 of the 15
major U.S. government agencies, and many more. Headquartered in Silicon
Valley, MarkLogic has offices throughout the U.S., Europe, Asia, and
Australia. For more information visit www.marklogic.com.

© 2019 MarkLogic Corporation. MarkLogic and the MarkLogic logo are
trademarks or registered trademarks of MarkLogic Corporation in the
United States and other countries. All other trademarks are the property
of their respective owners.

Contacts

MarkLogic Corporation
Kelsi Veralrud
[email protected]

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