Cracking the Code: New Insurance Industry Study from State Street Shows Move from Big Data to Smart Data is Critical
June 26 2013 - 8:00AM
Business Wire
As the insurance industry faces an unprecedented shift in how it
does business, a key consideration the industry needs to address is
how best to leverage its investment in technology, according to the
most recent survey of insurance leaders released today by State
Street Corporation (NYSE:STT). Specifically, insurers are looking
to better utilize data and analytics to make better investment and
risk management decisions.
State Street’s study, based on a survey of more than 300
insurance executives globally conducted by the Economist
Intelligence Unit, focused on the major industry issues and
examined how prepared insurers are to face those challenges. The
study, “Facing the Future: Blueprint for Growth,” showed that
insurers are hungry for better ways to collaborate and share data
across their business:
- Seventy-five percent of respondents say
that using data more effectively across their organization is a
challenge for them, with 22% citing it as a “major challenge.”
- Looking specifically at the investment
portfolio, while 84% of respondents say they have access to
portfolio investment data that is accurate, only two-thirds believe
they have access to data that allow them to understand their total
risk exposure.
- Thirty-seven percent of respondents say
they are evaluating a large-scale investment in IT systems within
the next 12 months.
“Like many large, global institutions, insurers are starting to
shift their technology focus from big data to smart data,” said
Joseph C. Antonellis, vice chairman of State Street. “The nature of
what insurers do provides a wealth of data, but it is clearly a
struggle to harness that data to capture meaningful, actionable
insights.”
In addition to leveraging data through analytics to better
understand and help customers, insurers are looking to technology
to address other challenges. A difficult market backdrop with a
historically low interest rate environment, future investment cash
flows and match them to future liabilities, while also helping to
ensure compliance with new regulations and reporting requirements.
In addition, State Street’s performance, analytics and compliance
products offer solutions to analyze performance and risk in
investment portfolios.
“Technology is a vital enabler for insurers as they look to
deliver on future opportunities,” concluded Antonellis. “However,
disparate legacy systems will make various data and systems
difficult to consolidate and analyze. A systematic and fresh
approach to updating and properly leveraging these systems will be
a key driver for this industry in the future.”
About the survey
To download the full paper or for more information on the survey
please visit:
http://www.statestreet.com/vision/insurance
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $25.4 trillion in assets
under custody and administration and $2.2 trillion in assets under
management at March 31, 2013, State Street operates in more than
100 geographic markets worldwide, including the U.S., Canada,
Europe, the Middle East and Asia. For more information, visit State
Street’s web site at www.statestreet.com.
This AUM includes the assets of the SPDR Gold Trust (approx.
$62.7 billion as of March 31, 2013), for which State Street Global
Markets, LLC, an affiliate of State Street Global Advisors, serves
as the marketing agent.
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