Data is the most important resource for any (re)insurance business. Most directors would agree with this fact, so why does incorrect data still impact so many companies?
Would you buy a house without conducting a survey, even if it wasn’t a mortgage requirement? Almost definitely not – it could be crumbling at the foundations and you would never know from the outside.
In the same way, while poor quality business data might not be as visible or as easy to uncover as, say, damp or subsidence, failing to check the quality, consistency and regulatory compliance of data can seriously undermine an entire organisation. Incorrect data will not only lose a company its competitive edge, but also get its name flashing on the regulator’s radar for all the wrong reasons.
Doing things the right way
A company-wide overview of data health is essential to improving any business, and satisfying ever more onerous compliance and audit demands. All the talent the market has to offer, all the insight, and every relationship nurtured would all crumble away without quality data. To stay competitive, every business in the London market must acknowledge the crucial importance of correct data as a key performance indicator.
A culture of data accountability must be created and respected in order for a modern business to prosper. However, existing ad-hoc methods of checking data quality often rely on people manually finding and fixing issues.
Using humans to check for human error has clear limitations, and – let’s not mince our words here – can also be rather boring for the individuals involved. Research suggests that up to 90% of all spreadsheets contain errors which impact their overall results.
What gets measured gets improved
The best technology automates data checks, flagging any queries and irregularities and simultaneously checking for and offering evidence of compliance with regulations such as Solvency II, Lloyd’s and a company’s own internal processes.
Businesses must ask themselves if they have data confidence. And if the answer is yes, how are they certain of this? Data is changed and updated all the time, so the data quality processes a company has in place must also be constantly checking data too, and providing evidence of these checks.
True data confidence means knowing that data is complete, accurate, compliant, and being monitored 24/7 to tailored, exacting controls and standards.
Automated data checks with improved workflow can improve accountability by intelligently routing issues to the correct users, at the right time. Talent and skills that were being diverted by manual checks could also be deployed elsewhere, boosting productivity and efficiency. The best technology is also scalable, offering value at every stage of a business’ growth.
Data is the foundation of and most important resource for any (re)insurance business, and anyone who argues otherwise has missed the point. Data drives everything. Better data will drive a better business.
Is your business built on firm foundations? Book a DQPro Demo now.