Poor data usage hampers protection sector - Medicals Direct

A survey conducted amongst senior underwriters and claims professionals at a recent Life Underwriters, Claims and Insurance Doctors (LUCID) conference found data capture and how it is used leaves significant room for improvement.

The headline results were:
• 43% said the data they generated had insignificant influence on their companies' protection market strategy
• 63% said that their companies do not capture sufficient data to inform their underwriting and claims decisions
• 50% believe that their companies should allocate more resource to IT and Data Analysis
• 58% of respondents said that their companies operate between two and five different systems to process business
• Only 7% said they had fully integrated systems

Commenting, Mike Benton, CEO of Medicals Direct Group said: "First, more data has to be captured. Second, the data that is already being captured needs to be interrogated, analysed and utilised - what's the point in collecting data and then not using it when making decisions? And thirdly, all the different systems companies use need to be integrated.

"Everyone is looking for cost-savings - there are few greater savings than those generated by increased efficiency and increased efficiency is exactly what integration can deliver."

Medicals direct conducted the survey alongside the launch of MD², an electronic data collection tool, at the conference and gave a sneak preview of their Ipad solution being rolled-out for use by their nurses in 2012.

Together this technology will assist in data capture, data mining and reporting to the life offices.

Warren Copp, Chief Underwriter, Pacific Life Re; "Optimising underwriting through the use of data is an ongoing challenge facing insurers. The MDG Medicals Direct data project should contribute towards developing market understanding in some key areas and benefit all stakeholders - not least the end customer."