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Maintaining Data Integrity in the World of Insurance

What Does Data Integrity Mean?

Data integrity refers to the validity, accuracy and completeness of data, as well as its preservation, precision and consistency. Sound data is essential to running a successful business because with it, executives can make educated decisions based on current internal and external circumstances.While all industries feel the pressure to preserve the integrity of their data, insurers are especially impacted given how crucial data is to their operation. And unfortunately, data integrity is one of the largest, and most complex, challenges that the insurance industry currently faces. According to a report on cyber insurance, security and data integrity from Ernst & Young, “there is a media focus on confidentiality as it is easy to understand (a loss of customer information), but almost all losses of customer information have been caused by a breach in integrity (the introduction of malware compromising the integrity of the system used to secure the data).”As an expert technology insurance firm, Alexant has guided companies through various challenges as a result of deficient data integrity and helped them to identify and implement the right tools to reinstate integrity to their data. These challenges include privacy violations due to data breaches, lack of accountability for private records, cyber threats due to inferior detection capabilities, and inadequate policies and security measures.Unfortunately, there is no one-size-fits-all solution for implementing and maintaining data integrity for insurance companies, however, with an expert like Alexant on your side, we can identify the process that will work for your unique needs.

Data Integrity vs. Data Security

Data security is the prevention of data corruption through the use of controlled access mechanisms. In simpler terms, it is the act of protecting the data and ensuring that only the people who should have access to the data are, in fact, the only ones who can access it. Therefore, data security plays an essential role in preserving data integrity.

Why is Data Integrity Important for Insurance Companies?

Accurate data is an essential component of making sound business decisions. So naturally, compromised data may result in decisions that will create negative outcomes for both insurance companies and their insured. Unfortunately, there are several threats to an agency’s data integrity, including:

  • Privacy Violations and Data Breaches

Despite database user controls, malicious users are still able to circumvent the system and access and/or delete information at will.

  • Cyber Threats

Insurance companies are constantly developing new mobile applications to improve the customer service experience. While these applications symbolize long-overdue innovation in the industry, digital exchanges carry a high risk of exploitation. In addition to this concern, agencies who outsource their infrastructure and storage to unregulated cloud providers are at risk due to highly differentiated security mechanisms that may not address unique threats. There is also a frightening gap between new threats and the capabilities available to detect attacks, monitor unauthorized exfiltration, and protect information.

  • Accountability for Private Records

Our dependence on data has made it necessary for governing bodies to implement data protection laws, such as the General Data Protection Regulation (GDPR). These regulations affect all industries, however, insurers are especially impacted because of how fundamental data is to their operations. Insurers are also held accountable by their reputation, which will be damaged in the event of a privacy violation.

  • Identifying the Right Tools to Ensure Data Integrity

Selecting the right tools to ensure data integrity for your company can feel overwhelming, but it is essential to maintaining data integrity. Depending on your computing model and the key features important to your business, one tool may work better for you over another.

  • Developing Proper Policies and Security Measures

As discussed above, data security preserves the integrity of data. In order to secure your data, you must have the technical ability through hardware and software, as well as data security policies and procedures that are integrated into the corporate culture. In order to accomplish this, data security policies and measures must be developed and documented.

Insurance Consulting: How Data Integrity Can Be Managed

A data management system is a valuable tool for defining, manipulating, retrieving, and managing big data. However, if your data lacks integrity for any reason, management and business decisions will suffer.In a survey of 2,190 global senior executives, only 35 percent said that they had a high level of trust in their business data. If you find yourself in line with the 65 percent of executives who do not feel confident in the integrity of their data, then it may be time to consider an insurance consultant.Alexant’s insurance consulting team, led by Sue Good, can help you feel confident that your data is accurate and valuable to the needs of your agency. With over 35 years of insurance and consulting experience, Sue Good helps agencies better understand the role that data plays in business so that they can continue to deliver exceptional results to their clients. Her proficiencies span accounting, HR, IT and data integrity, paving the way for agency owners to manage and grow their business. Sue truly knows firsthand what works, and what doesn’t, in the insurance agency environment.Engaging with our team is simple!

  • Initial Conversation

It starts with a consultation, where we’ll discuss your needs, pain points and future plans.

  • Data Integrity Audit

Then, we’ll run a data integrity audit, in which we will assess the quality of your current data using reports from your management system.

  • Agency Data Overview

Next, is our agency data overview, where we’ll provide you with the results and our recommendations based on your data integrity audit.

  • Workflow Development

After that, we will delve into agency workflows and processes to develop efficient solutions for all of your departments.

  • On-Going Peace of Mind

And finally, it results in on-going peace of mind because you will be confident in your agency processes and data integrity, and we will be here to support your evolving agency as you grow.If that sounds like a plan to you, and you’re ready to start the process, schedule your free consultation with Sue Good here.Learn more about our Consulting Services now.

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