Turning Data Into Information: Business Intelligence In Insurance (Strategic Focus)

Table of Contents

OVERVIEW

• Catalyst
• Summary

KEY MESSAGES

• Insurers are facing a laundry list of challenges that BI can help mitigate
• A confluence of factors is driving adoption among small insurers
• Meet the needs of the SME market with pre-built offerings and Software as a Service
• An opportunity exists to move large insurers from point solutions to enterprise-wide solutions with rich capabilities
• Spending on BI will slow in 2009, however fraud, risk and compliance will maintain medium-term growth

MARKET OPPORTUNITY

• Insurers are facing a laundry list of challenges that BI can help mitigate
  • Customer intelligence
  • Compliance
  • Enterprise performance management
  • Financial analytics
  • Fraud
  • Risk

• Several pockets of growth exist for BI within the insurance sector
  • Moving large insurers from point solutions to enterprise-wide solutions with rich capabilities
  • A confluence of factors is driving adoption among small insurers
  • Life insurers are becoming increasingly interested in BI

• Spending on BI will slow in 2009, however fraud, risk and compliance will maintain medium-term growth

IMPACT ON THE INSURER

• Democratizing BI can lead to improved performance and can be driven by different pricing strategies
• A shared services strategy enables an enterprise view
• What the vendor consolidation means for insurers

GO TO MARKET

• All-in-one vendors should highlight the value of an end-to-end solution but not neglect to position themselves as stand-alone solutions
• Specialized vendors should remain focused and seek strength through partnerships
• Meet the needs of the SME market with pre-built offerings and Software as a Service
• Vendors preach but do not often practice targeting customers based upon lifetime value
• Recommendations
  • Sell to the business and not to the IT department
  • Continue to improve and highlight mobility features
  • Specialist vendors should innovate with agility
  • Develop enterprise wide deployments one department at a time, if need be
  • Understand your customers' businesses

APPENDIX

• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: BI has a role to play in meeting today' s challenges
• Figure: BI maps onto the key objectives of insurers
• Figure: Current and projected adoption of BI functions, by insurers with 5,000+ employees
• Figure: Outlook for BI investments, broken-down by insurer size
• Figure: Projected BI spending by non-life insurers, 2008 - 2013
• Figure: Projected BI spending by life insurers, 2008 - 2013
• Figure: Shared services framework
• Figure: Current SOA adoption, broken down by sector
• Figure: Software as a Service usage, by employee size