NEW whitepaper
The London insurance market is poised for the next wave of modernisation and digital transformation. However, as highlighted by the recent DQPro survey conducted in mid-2024, the industry faces significant challenges in fully embracing data-driven decision-making and leveraging emerging technologies. The survey and subsequent whitepaper is focused on data management practices in the insurance sector, and uncovers a complex landscape of progress and obstacles.
Written by leading data experts from Chaucer, Ascot, EY, Liberty Specialty Markets and Markel this whitepaper provides a comprehensive explorations of the current data landscape and a roadmap for the future.
You can download the full whitepaper for free here:
Below is a summary of some of the key challenges exposed by the survey results – all of which will be further explored at the forthcoming Data Jam event on 28th November.
A summary of insights gained from the DQPro Survey
Data utilization in the London market
The survey paints a nuanced picture of the London market's relationship with data. While there is widespread recognition of its strategic importance—70% of respondents rated their understanding of data’s value between 8 and 10—this awareness does not always translate into effective implementation. Only 40% of respondents felt confident in their ability to execute data strategies, with ratings between 6 and 7. This gap between data awareness and practical readiness reflects the market’s struggle to move beyond understanding data's potential to applying it effectively in daily operations.
Despite these challenges, progress is evident. The shift from manual to automated data processing is underway, with 60-89% of participants reporting frequent use of automated systems. This transition is crucial for enhancing operational efficiency and ensuring regulatory compliance. However, it also amplifies the risk of errors moving quickly through systems, putting a premium on data accuracy.
Barriers to effective data management
One of the primary barriers identified in the survey is the London market’s reliance on legacy systems and outdated business processes. These systems, often built on manual data entry and lacking consistent data standards, are ill-equipped to harness modern data technologies. As one respondent aptly noted, "Our biggest challenge is legacy data quality and antiquated processes."
Beyond technical hurdles, behavioural resistance within organisations is a major roadblock. The survey found that while 52% of respondents rated senior leadership’s influence in data management highly, a significant portion of the market remains entrenched in traditional practices. The impending retirement of seasoned professionals further complicates this, as it threatens the transfer of institutional knowledge and slows the drive for innovation.
The role of emerging technologies
The advent of AI and machine learning presents both promise and challenge for the London market. These technologies have the potential to revolutionise data management, improving risk assessment, pricing accuracy, and operational efficiency. Respondents expressed optimism, with one commenting, "AI and machine learning will revolutionise the industry, but our legacy systems and processes hold us back."
However, the successful adoption of these technologies hinges on overcoming persistent data quality issues. AI and machine learning can only be as effective as the data they process, and the survey underscored the need for more robust data governance frameworks. Views on data governance were notably diverse, with responses to questions about governance maturity varying widely.
Investment and strategic data use
The survey revealed that the London market recognises the need for greater investment in data capabilities. A significant 71-85% of respondents anticipate increased investment in data infrastructure over the next five years, signalling a commitment to data-centric decision-making. Furthermore, 51-70% of organisations are dedicating a growing proportion of their workforce to data-related roles, reflecting the market’s understanding that specialised skills are essential for effective data management.
Nevertheless, aligning data practices with strategic objectives remains a challenge. The survey emphasised the need for clearer data governance and more explicit definitions of data responsibilities. Leadership involvement will be crucial in driving this change, with 70-85% of respondents stressing the importance of leadership in shaping data strategy.
Preparing for regulatory changes
Regulatory compliance is a significant driver of data initiatives in the London Market. The survey found that 60-89% of respondents rated their data practices as effective in ensuring compliance. However, preparedness for upcoming regulatory changes remains inconsistent, with only 30-59% of participants feeling adequately equipped. This gap underscores the need for ongoing investment in data infrastructure and the adoption of more agile data practices.
Real-time data and cloud solutions
Real-time data usage and cloud solutions are emerging trends, but progress has been slow. The survey revealed that 75% of respondents believe less than 30% of the market is ready to fully engage with real-time data, and 65% think less than half of the market has adopted cloud solutions. This lag reflects a disconnect between aspiration and execution, highlighting the need for more concerted efforts toward modernisation.
Conclusion: A call for action at Data Jam 2024
The DQPro survey provides valuable insights into the data challenges facing the London insurance market, from legacy system constraints to the integration of emerging technologies.
You can download the full whitepaper here:
These issues—along with strategies for overcoming them—will be at the forefront of discussions at the Data Jam event on 28th November. This event offers a timely opportunity for industry leaders to come together, share knowledge, and chart a path toward a more data-driven, innovative future.
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