Driven by Data: State Street Report Finds Insurers Rethinking Risk and Investing More in Data and Analytics
February 12 2014 - 9:42AM
Business Wire
Need for Risk Solutions Leads to Threefold Increase in Insurance
Clients
Insurers’ risk management practices are becoming increasingly
reliant on data and analytics, according to a new report from State
Street that surveyed more than 400 insurance executives about their
capabilities in this area. Only 13 percent of insurers surveyed
considered their firms’ enterprise-wide data management to be a
significant strength and only 19 percent are confident in their
multi-asset risk tools, the lowest proportion of respondents from a
pool of asset managers, asset owners and alternative managers.
Against that backdrop, insurance executives recognize the need for
better, stronger data systems, with 82 percent of firms citing data
and analytics as a key strategic priority for their business.
According to the report, investment in data and analytics
amongst insurers is expected to grow. An overwhelming majority of
respondents (81 percent) stated that they intend to increase
spending on data initiatives in the coming years. State Street saw
a threefold increase in the number of insurance clients in 2013,
demonstrating the growth in popularity of data-driven risk
solutions amongst insurers.
“Fundamentally transformed markets, a push into new asset
classes and a more stringent regulatory environment are all
accelerating change and contributing to a rise in demand for data
and analytics capabilities amongst insurers,” said Jeff Conway,
executive vice president and head of State Street Global Exchange.
“Risk management has always been at the nexus of underwriting and
investment, and insurers know what is at stake. The challenge ahead
is how to turn fragmented IT systems into a strong and flexible
platform capable of adapting to the demands of a more complex
investment climate.”
“To build an effective data driven business for 2014 and beyond,
insurers should focus on building a stronger foundation,” said
Scott FitzGerald, executive vice president and head of State Street
Sector Solutions, Americas. “They can do this by improving risk
tools with multi-asset class capabilities, developing solutions to
manage regulation globally, accelerating investment decisions, and
developing a scalable data architecture.”
To view the full paper, please click here.
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 $27.4 trillion in assets
under custody and administration and $2.3 trillion in assets under
management* at December 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.
$31 billion as of December 31, 2013), for which State Street Global
Markets, LLC, an affiliate of State Street Global Advisors, serves
as the marketing agent.
CORP-0946
State Street CorporationAnne McNally, +1
617-664-8576aemcnally@statestreet.com@StateStreet
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