Why Insurance Needs a Data Revolution: Insights from Kate Seddon on Data Quality and Governance
In an industry as complex and data-driven as insurance, the need for accurate, consistent, and trustworthy data has never been more pressing. Yet, many organisations still face a familiar and frustrating issue: data duplication and lack of trust in shared data. It’s a challenge that affects everyone, from underwriters and brokers to clients and service providers.
But what if we could turn this around? What if there was a way to reduce inefficiencies, leverage external insights, and ensure that every player in the supply chain is using reliable, quality data?
In her whitepaper chapter, Kate Seddon, Head of Data at Liberty Specialty Markets (LSM), explores the growing need for data quality and governance in the insurance sector. Drawing on her extensive experience, Kate offers actionable insights into how insurers and reinsurers can unlock the full potential of their data—especially by tapping into third-party data sources.
The Real Data Challenge: Trust & Duplication
In today’s fast-paced insurance environment, data flows from multiple sources—brokers, clients, co-insurers, service providers, the list goes on. Yet, as Kate explains, each participant in the supply chain often repeats the same tasks: capturing, checking, and re-analysing data.
Why? Not because they distrust their colleagues, but because they don’t trust the data itself. This lack of confidence leads to inefficiencies and duplicated efforts. Imagine each step of the process redoing work that’s already been done—slowing down operations and increasing the risk of errors.
Kate’s Solution: Focus on minimum data standards and clear ownership of specific data elements. By ensuring that everyone in the chain is working with reliable, high-quality data, we can streamline processes and reduce unnecessary duplication.
Leveraging Third-Party Data for Efficiency
One of the key points Kate emphasises is the value of third-party data. Instead of solely relying on internal sources, insurance organisations can tap into external data to enrich the quality of the information they’re working with.
External data providers often specialise in gathering and validating information that is difficult or time-consuming for insurers to manage on their own. By integrating this data into their workflows, companies can improve the speed and accuracy of their decision-making processes, reduce manual work, and enhance customer experiences.
Kate gives a powerful example of how company ownership data—a notoriously tricky element—can be mastered using third-party sources. By improving the accuracy of this data, insurers can unlock new business opportunities and provide deeper insights to their clients.
Master Data Management (MDM): A Single Source of Truth
Another key topic in the chapter is the concept of Master Data Management (MDM). MDM is all about establishing a single source of truth for core data elements, ensuring that everyone in the organization is working from the same, reliable information.
For example, imagine if every participant in the insurance supply chain used a single, trusted data source for important details like company ownership or client information. It would drastically reduce the need for time-consuming data reconciliation projects and allow teams to focus on more strategic work.
According to Kate, MDM doesn’t always require a separate system. In fact, many organisations can implement MDM practices using their existing infrastructure. The key is to have clear governance, strong quality controls, and defined data ownership.
Minimum Data Standards: The Path to Industry-Wide Success
Finally, Kate discusses the importance of agreeing on minimum data standards across the industry. When everyone—brokers, underwriters, service providers—works from the same set of standards, it becomes easier to ensure consistency, improve data quality, and meet regulatory requirements.
Minimum data standards don’t just benefit individual organisations; they have the potential to improve the industry as a whole. As Kate notes, proactive data management can put insurers ahead of the curve when it comes to market-wide changes or new regulatory requirements.
Moving Forward: A Call to Action
Kate Seddon’s whitepaper chapter provides a compelling roadmap for how the insurance industry can move past its data challenges and embrace a future driven by data quality, governance and collaboration. By leveraging third-party data, implementing MDM practices, and agreeing on minimum standards, insurers can improve efficiency, reduce errors, and position themselves for long-term success.
Curious to learn more? Download the full whitepaper chapter to dive deeper into these insights and discover how your organization can harness the power of data to drive business excellence.