Improving internal controls, risk management systems and business performance are the keys to addressing sweeping changes that lie ahead for the insurance industry. Developing a common framework that defines the scope of governance, policies, IT and business responsibilities is essential to manage data effectively. After having difficulty achieving that task, many insurers now recognize that quick fixes that worked in the past are no longer sustainable solutions.
As insurance companies embrace advances in technology, they face challenging implications. Bridging the gaps among IT, data governance and management's expectations creates a complex process with no simple solution. After relying on time and budget criteria for project initiatives in the past, insurers are now focusing on strategic alignment, enhancing customer experience and competitive advantage. Traditional metrics -- return on investment, payback period, cash flow, productivity benefit and reducing cycle time -- are under greater scrutiny as management takes a more rational approach in deploying scarce dollars to the right technologies and process improvements.