Data as the gold(en) standard for insurers
The constant flow of new technology offers the insurance sector plenty of choice of innovation options. In between all this fervour of innovation, the Internet of Things (IoT) has really taken off over the past few years: physical objects, otherwise known as ‘edge devices’, such as cars, household appliances and wearables, which are linked to the internet and record, collect and share online data. IoT makes it possible to monitor, analyse and evaluate data from such appliances remotely and to indicate trends. This information is then used to develop and improve new personalised services, or to cut costs.
The result is that a constantly growing quantity of data is being collected. This data is worth a lot when you know what you want to achieve with it, as well as how to carefully process and analyse it.
The main business drivers behind the ‘Internet of Things’ as an accelerant for digital transformation
Within the financial sector, an enormous battle to obtain and retain the customer’s attention has been raging for years. Banks are constantly innovating, and not just to improve their service provision, but also to keep bank services secure and accessible. At the same time, there is a rise in banks, payment companies and lending platforms which only work online, so are therefore able to offer their services in an accessible and cost-effective manner. The same also goes for the insurance sector. The service experienced by consumers and companies in other sectors such as the banking sector, for example, is now expected from insurance companies too. Think 24/7 online service provision, seamless connection to different devices, on-demand product and personalised services.
The increasing competition between companies to retain the customer’s attention is resulting in a digital transformation in which developments are coming in rapid succession. And should business drivers such as a better competitive position, cost efficiency and new business models fail to suffice, the coronavirus pandemic has brought this to a definitive end. Everyone has felt the need for more and better online service provision, and this has put digital transformation even higher on many organisations’ agendas.
It is no mean feat to digitise and innovate in a successful manner, and thereby actually to become more productive or more attractive. It goes hand in hand with new ways of working, alternative earnings models or services, whereby old routines need to be broken and a new way of learning is created. IoT is an important facilitator for this process.
IoT and data in the insurance sector
Innovation in the insurance sector is increasingly taking place with intelligent IoT technology, for example to reduce the number of loss claims for fire insurances. To validate the causes of fire and develop risk profiles, data from external sources originating from meter cupboards where fires often start is added to the insurance company’s own dataset. By placing sensors there which measure things such as temperature and electricity consumption, fluctuations such as a sudden rapid increase in electricity consumption or overheating are proactively indicated. The meter cupboard or power supply can be shut off remotely, thereby reducing fire damage and the number of claims. Because insurance companies then have to pay out less money as a result, policies can be sold more cheaply, thereby making them more attractive.
Collecting data is therefore nothing new for the insurance sector, but the way in which it can be used and the scope of the data that can be collected with IoT (big data), definitely are.
A fast, secure, compliant and stable platform
IoT technology is the driving force, but the data this generates, alongside the data in business-critical applications, is central to this. The quantity of data is increasing, fluctuating every day and needs to be processed quickly and securely. This requires a future-proof, scalable and solid platform, which once again satisfies all the legislation and regulations faced by the financial sector.
Because however data is collected, the Dutch Authority for the Financial Markets (AFM) and the Central Bank of the Netherlands (DNB) are placing ever more stringent security and compliance requirements on its storage and processing. In order to be able to focus on the improvement of the service provision and stay ahead of the competition, it is important that your own IT department isn’t spending all of its time on this. If that is the case, outsourcing could be a solution.
A good example of this is FRISS, one of the main suppliers of fraud detection software for the insurance industry. FRISS processes an enormous quantity of heavily fluctuating data every day, so it needs a fast, scalable, secure and stable platform, which is exactly what it found at Solvinity. As a multi-cloud provider for organisations with high security and compliance requirements, such as insurers, Solvinity is helping to make the right (platform) choices and takes care of their management, both in the public and in the private cloud. Thanks to our many years of knowledge and experience in the financial sector and certifications and insurance reports, we also ensure that you are and remain demonstrably in control. Our certifications include ISO 27001 and PCI DSS, and we are the Netherlands’ first managed service provider whose complete management environment, both private cloud and the Azure public cloud, is SOC 1 and SOC 2 compliant.
A fast, secure, compliant and stable platform
Data is the new gold!
It is obvious that in order to stay ahead of the wishes of the end user and the competition, digital transformation is an essential component for progress with the insurer and data has become the gold(en) standard. Just as gold is safely stored in a safe, insurers and consumers alike must be assured that data is being securely stored and processed via the platform and the systems on which it ends up. Specialist organisations such as Solvinity can help to select the best solution to safeguard your data, how to best secure it, arrange access and thereby satisfy the right rules and procedures. This means that insurers can focus on turning this gold into metaphorical new jewels and crown jewels: i.e. innovative customer-oriented solutions.
If you wish to discuss this matter further, please get in touch with me at firstname.lastname@example.org or on +31 (0)6 53 54 83 25. I am happy to help.
E-book Trends & digitisation
in the financial sector
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