Top 5 Things You Can do to Improve Insurance Data Management Systems: Keep it Simple, Less is More, Look for Small Wins, Encourage Cross Pollination, Choose p1
Even if your company purchased or built a data management system last year, if it was built on a platform that is not keeping up with or defending against the latest cyber security threats, it is at far more risk than platforms which are. This reality has given rise to SaaS solutions that help insurance institutions maintain a secure platform.
In the 1940’s the insurance industry led the world into the era of institutional technology. Some of the cutting edge thinking employed in the movie “The Imitation Game” utilized to break the Nazi Enigma code was domesticated and sent into action, assisting insurance companies in the creation of mainframes. These mainframes really transformed the insurance industry as it became automated in exciting new ways. Unfortunately, the insurance industry has ceded (pardon the pun) its position as an innovator.
Every year, more and more runoff companies are becoming targets for mergers and acquisition. But often these mergers can be abrupt like jumping a truck onto the highway rather than smooth and orderly. Larger insurance companies with an appetite for runoff based M&A must be prepared to deal with a lot of legacy systems.
The workforce of the western world has retooled. The industrial economy has given way to service and knowledge economies. The problem is many managers within the knowledge economy were taught the management techniques of the industrial world. Industrial assignments in the knowledge economy can be debilitating to the morale of the employee, because that employee is built to be more of a generalist, compensated for creativity and initiative.
How could potentially millions of dollars go unaccounted for in an insurance company? It all comes down to whose job it is to uncover it. A claims adjuster has an explicit responsibility to pay on a claim in a timely manner. He is not necessarily responsible to notify and bill the reinsurance company with the associated potential claim. The reinsured money can be hard to remember, hard to administrate, and potentially hard to recover if enough time has lapsed.