Data quality issues continue to hinder business intelligence efforts by insurance companies a new report from New York-based Novarica finds.
The report, “Business Intelligence in Insurance: Current State, Challenges, and Expectations,” queried 75 insurance CIOs who are members of Novarica’s Insurance Technology Research Council about the challenges they face leveraging business intelligence.
Survey results indicated that the primary issues all surround data quality, with 50% of respondents citing significant challenges with data inconsistency (data is in different forms) and more than 60% indicating significant challenges concerning source system data quality (the information is inaccurate or invalid).
“As BI capabilities expand, carriers acknowledge that Master Data Management principles are important, but relatively few have them in place or have prioritized them for the short term,” the report, authored by Novarica Principal Martina Conlon and Analyst Kimberly Markel states. “The challenges of normalizing enterprise data and motivating business user change are significant, but we believe that insurers who do develop strong business intelligence capabilities and act upon the insights revealed will have a significant competitive advantage in the difficult market ahead.”
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