A new online benchmark assessment platform aims to help insurance firms assess their performance in a key area of business today: data and analytics.
The platform, specifically designed for enterprise data and analytics teams at insurance companies, was recently launched by research and consulting firm Eckerson Group in partnership with the Insurance Data Management Association (IDMA), a global professional association dedicated to increasing the level of knowledge and visibility of insurance data management.
The free benchmark assessment is overseen by a board of data and analytics experts from the insurance industry, and is designed to enable firms to benchmark their data and analytics capabilities against peers. Digital Insurance spoke with Wayne Eckerson, president of Eckerson Group, about the new service.
DI: Why would a firm want to leverage the service; what’s the business imperative?
Eckerson: Leading organizations today use data and analytics to drive strategic initiatives, such as digital transformation, customer 360, and intelligent supply chains. Research now shows that data-driven companies enjoy a competitive advantage and are positioned to disrupt their industry. Thus, many business and technical leaders want to understand whether they are generating sufficient value from their investments in data and analytics.
One way to do this is to compare their enterprise data and analytics program to an objective yardstick, like an industry maturity model or peers in the insurance industry. Our assessment lets them do both. It's also a great way to educate data and analytics professionals about best practices, and it makes a great collaborative exercise for team members.
DI: What kinds of companies are invited or expected to take advantage of the service?
Eckerson: Any insurance company that has an enterprise data and analytics team can benefit from the benchmark assessment. More specifically, companies that offer property and casualty, life and annuities, health, reinsurance, and brokers should consider taking the assessment.
DI: What types of insights and learnings will the service provide participating companies?
Eckerson: First, it will identify capability gaps in people, process, and technology, as well as strengths. This will help data leaders pinpoint where they need invest to stay abreast of changes in the industry. Second, it helps executives understand whether they have made appropriate levels of investment in data and analytics. Third, it helps them understand whether they are ahead or behind their competitors. We expect some companies will take the assessment every year to gauge their progress, essentially benchmarking against themselves.
DI: Please provide a brief description of the framework.
Eckerson: The assessment framework consists of 12 categories and 44 subcategories of questions. The assessment takes a multi-dimensional view of an organization's data and analytics program, spanning technology, staffing, teams, culture, budgets, and strategic initiatives. Sample categories are data management, business intelligence, data governance, data analysis, and data science.
DI: How can participating companies be assured that their information is secure?
Eckerson: The benchmark data is aggregated, so it's impossible to divine the scores and responses of any individual company. Participants can only access the assessment and personalized benchmark report with a secure link. Finally, we never share respondent data with organizations or individuals.
