Unlocking the Power of Data: Insights from Angus Black Part 2

In a thought-provoking conversation, Angus Black, Director at BDS BarnOwn Data Services, highlighted the significance of data in the insurance industry, echoing the adage that "data is the new oil." Over the past 16 years, BDS has evolved from focusing primarily on financial metrics to encompassing a wide range of applications, including underwriting, actuarial analysis, compliance, and claims management.

Angus emphasised that their comprehensive data standard has been instrumental in accommodating diverse client needs. Initially, the focus was on understanding policy counts, risks, and claims. However, as the landscape evolved, so did their offerings, integrating data for reinsurance models and regulatory compliance. By automating processes, BDS has not only enhanced data quality but also reduced the manual capturing of information, ensuring more accurate reporting.

The conversation also touched on the collaborative nature of the insurance ecosystem. By integrating data from brokers and insurers, BDS enables stakeholders to engage in meaningful discussions based on shared insights. Angus noted that this collaboration is particularly vital during periods of high claims activity, such as natural disasters, where timely data can significantly improve response efforts.

Furthermore, Angus stressed the importance of continuous adaptation to changing regulatory requirements, underscoring that client feedback is essential for maintaining data integrity. By fostering strong relationships with data sources, BDS remains agile and responsive to industry needs. In summary, Angus concluded that leveraging data effectively is crucial for driving operational efficiency, enhancing risk management, and ensuring the long-term success of insurance businesses.

Key points

1. Importance of Data: Angus emphasised that data is critical to the operations of insurance businesses, reflecting the saying "data is the new oil." The value of data has grown tremendously over the years.

2. Diverse Users of Data: Angus outlined the various stakeholders who utilise data within client companies, including finance teams, underwriting and actuarial teams, compliance and risk management teams, internal audit departments, broker relationship managers, claims departments, and fraud detection teams.

3. Evolution of Data Use: Over 16 years, BDS BarnOwn Data Services has adapted to meet the evolving needs of clients, initially focusing on financial metrics and later expanding to support underwriting, reinsurance, compliance, and fraud detection.

4. Data Collection and Standards: The company has built a solid data standard foundation, continuously expanding their data elements to cater to client needs and comply with regulatory requirements.

5. Quality Assurance: Angus discussed the importance of validating incoming data for accuracy, applying business rules, and conducting reasonability checks to ensure data quality.

6. Value Addition through Automation: The company focuses on automating processes to reduce manual errors and improve data quality. This includes automating the integration of policy data between brokers and insurers.

7. Analytics and Reporting: BDS BarnOwn Data Services provides granular data analytics to help clients meet various reporting requirements, improving their decision-making processes.

8. Facilitating Claims Process: The data system helps streamline the claims process, ensuring insurers have immediate access to relevant policyholder information.

9. Broker Support: The company aims to simplify data management for brokers, reducing the reporting burden on them and enhancing the quality of information exchanged between brokers and insurers.

10. Data as a Business Driver: Angus concluded that data is pivotal in the insurance industry, and leveraging it effectively can lead to better business outcomes.