Data supply among insurance and financial services

Study on data supply in the insurance industry

Reliable and up-to-date data is crucial when advising insurance customers. But data quality often leaves much to be desired. This is the conclusion reached by ajco solutions and zeitsprung in their joint study on “Data Supply between Insurance and Financial Services Sales”.

The survey of nearly 300 brokers and financial advisors provides the insurance industry with insightful insights into the status quo of data availability as well as future challenges.

Customer satisfaction is dependent on data quality

When asked about the relevance of insurance data for customer service, there is great unanimity among the 294 study participants: 96 percent are convinced of the importance of data for their business; this is particularly true for health insurance, occupational disability insurance and in the property business. Nevertheless, the majority of the consultants and brokers surveyed were only relatively satisfied with the quality and timeliness of the data they receive from insurance companies; on a scale of 1 to 6, the average rating was 3. This means that there is still significant potential for insurance companies to optimize the provision of data.

This plays a crucial role because, according to the vast majority of study participants, data quality and timeliness have a direct impact on customer satisfaction. For this reason, almost half of the respondents consider the reliability of the data provided in any case when selecting a product, and for a further 37 percent this is at least sometimes the case. For around 80 percent of respondents, insufficient data quality even leads them to consider changing their product coverage.

Data and digitization as challenges for the future

The relevance of data quality and timeliness will continue to increase in the coming years: An overwhelming majority of respondents assume this. However, as the study shows, insurers exhibit significant differences in the reliability of their data. Particularly due to old inventory systems, data provision is currently still a major challenge for some companies. “In order to attract and retain customers in the future, investment in IT systems as well as the digitalization and improvement of business processes will remain important challenges in the industry,” says Andreas Adam, Managing Director of ajco solutions GmbH, which specializes in consulting and IT solutions for sales, service and marketing.

Modernization as a driver for future success

This is all the more true as the study reveals an investment backlog in the necessary IT systems. Only 40 percent of survey participants have the systems they need to work efficiently in the future. For a total of 60 percent of the brokers and financial advisors, on the other hand, these systems need to be completely or partially built or modernized.
As Managing Director of zeitsprung GmbH, Marcel Hanselmann is very familiar with the digitization of business areas and processes in the insurance industry. Thus, he particularly emphasizes the need for standardization and networking in the industry: “In order for the insurance industry to benefit from IT and digitalization in customer relationships, this ‘engine’ needs the right ‘fuel’. That’s why it’s critical to invest in providing comprehensive and reliable data.” In the long term, this will enable insurance companies and intermediaries to design processes smoothly and with little effort, and to attract and successfully retain customers.

The study is now available for download at www.ajco.de/Studie2022. (The study is only available in German)

Recommended articles on the subject of insurance

Analysis: How insurers achieve a holistic management framework

Digitalisation, sustainability, demographic change and increasing reporting obligations pose significant challenges for insurers. In the December issue of Versicherungswirtschaft, we describe how these topics can be successfully integrated into a forward-looking management framework.

Rethinking pension provision

The life insurance industry must develop new strategies in order to remain successful in the future. Convenience, flexibility and sustainability are particularly important for the Next Gen. From Consileon’s project experience, four central fields of action emerge with which life insurers can reach the Next Gen in the area of pension provision and grow.

Weltkugel: Nachhaltigkeit in der Finanzbranche

Whatever it takes

Sustainability in the financial sector: hype or hope? This question was discussed at the fifth VersicherungswirtschaftCLUB in Karlsruhe. The panel sent a positive signal that the insurance industry is determined to be part of the change towards a greener world. You can read the details in the current June issue of Versicherungswirtschaft.

Data quality is the key to success in customer relationships