McKinsey Study: Analytics Investments in Insurance Sector Falling Short
July 24, 2017
Data, data, data. It’s nearly impossible to get through a day without reading or hearing something about the power or potential of data. As consumers increasingly expect their brand experiences to be hyper-customized and prescriptive, companies must be able to analyze enormous amounts of data to get to truly meaningful CX insights, no matter what industry you’re in. And that, of course, requires a substantial investment.
In a recent McKinsey survey of data and analytics leaders at global life and P&C insurance carriers, researchers found that they were investing as much as $80 million per year in data analytics, and nearly all planned to invest more in 2017. At least half of the firms’ CEOs consider data and analytics a top-five priority.
Yet only about one in six survey respondents reported that data and analytics were delivering high impact. Why? The largest percentage (nearly 40 percent) said efforts fail because of limited frontline adoption or inability to integrate data and analytics solutions into workflows.
Merging data and analytics solutions into critical workflows is essential to unlocking true business transformation. At a time when advisors and agents are facing insurmountable pressure on all sides – from a growing robo-advice market to changing regulations to a new generation of digital-first consumers – the data they have on (and can get from) their clients and prospects is critical to improving the customer experience.
The challenge facing firms is how to make the collection of field data as easy and seamless as possible. Manual data entry into a CRM system, as we all know, is neither efficient nor scalable. The key is identifying ways to deeply embed data collection, analysis and synchronization into everyday workflows so that it’s no longer a burden on the advisor or agent. Only then can data and analytics deliver the impact that financial services firms want and need in order to stay relevant.
Read the full McKinsey analysis here.
- How Financial Services Firms Are Embracing the New Customer Experience
- The Advisor Cloud Completes the Customer Experience
- Recap of Hearsay Summit 2017: The Mobile Advisor Cloud