Data Monetisation in the Insurance Industry

Traditionally, the insurance brokerage sector has accumulated a large amount of information, and the last decade saw the volume of available data increasing exponentially. Even more significantly, powerful new analytics technology enables insurers to use that data in ways they had not previously considered.

However, many organisations have yet to develop business models for data monetisation. Some brokers face organisational challenges; others are waiting for opportunities to emerge, and only a few early movers are using their data to create new sources of revenue. These companies are rethinking their traditional roles, adopting a data-centric mindset, and leveraging digital ecosystems.

So, how can brokers get the most from data and build a business model around it? The answer is the right combination of culture, vision, and strategy.

Laying the foundation

The starting point is to set up a robust, scalable, cloud-based data platform. The second step is implementing a data governance framework to address quality, compliance, processes, and security.

These initial steps provide reliable data that is easily accessed by the stakeholders, providing immediate benefits through improved decision-making.

Productising data

As data becomes easier to access and more widely used, its value increase. Productising data involves creating an ecosystem of datasets, APIs, analytic models, and reliable third-party data sources, providing an enhanced view of the information.

Digital ecosystems provide the backbone to support analytics capabilities, while integrating and sharing data with partners and customers will help generate new product ideas.

Monetisation models

Organisations are looking into various ways to generate revenue from data, and these business models span from providing essential data to delivering advisory services and solutions to customers and partners.

Management teams should consider the possible ways to generate revenue with minimal effort (data provider) versus investing their resources in a long-term plan (Analytics as a Service).

Four main categories of these models have emerged in the Insurance Brokerage sector in the last few years:

Data Provider. Offer data in raw format, often in real-time.

Example: Howden Driving Data, a large-scale end-to-end telematics solution created from over a decade of in-house broking experience and billions of miles of live data^[1]

Data-Driven platform. Aggregate and analyse data from several sources across the industry to improve decision-making.

Example: Gallagher Drive offers clients a premier data and analytics platform to help get the most out of the client risk management program. ^[2]

Data Analytics as a Service. Using industry expertise and analytics capabilities, helps the client to develop solutions.

Example: Aon Inpoint is the management consulting and advisory arm of Aon, the world’s leading professional services firm on the topics of Risk, Retirement, and Health enabled by Data & Analytics. It focuses on supporting insurers and reinsurers generate tangible results by helping them identify opportunities and improve business performance. ^[3]

Solution Provider. Offer end-to-end services, including data, infrastructure, and analytics.

Example: WTW ResQ is the industry-leading P&C insurance and reinsurance loss reserving solution, used by almost 500 companies globally to carry out fast, insightful analysis of claims experience and trends with complete transparency and to communicate more reliable results with greater confidence. ^[4]

Final Thoughts

Using your organisation’s data only for monitoring or reporting is not enough; it’s an asset that needs to be monetised.

When data drives business plans, an essential part of the equation is data quality and the amount of effort needed to make the data useful. What matters are the insights, how they can improve operations, and how they can help people make better choices. Setting up a harmonic ecosystem and a data-driven culture will enable new ways to generate revenue streams. Please contact us if you want to find out how NTT DATA can help you achieve this.