Cracking the Code: New Insurance Industry Study from State Street Shows Move from Big Data to Smart Data is Critical

  Cracking the Code: New Insurance Industry Study from State Street Shows Move
  from Big Data to Smart Data is Critical

Challenges from Regulation, Changing Customer Demographics and New Investments
Can Be Addressed with Enhanced Focus on Technology

Business Wire

BOSTON -- June 26, 2013

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.

Contact:

State Street Corporation
Jan Symosek, +1 617-664-1898
www.statestreet.com
@StateStreet
 
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