Background
Insurance companies are evolving to meet shifting consumer expectations, provide tailored products, and mitigate risks. They’re focusing on personalization, digital-first approaches, and regulatory compliance innovations to meet market expectations — all of which are critical to attract and retain customers.
Financial services companies have invested heavily over the past 20 years in attempts to achieve a single view of their customers. These legacy master data management (MDM) systems, based on probabilistic matching, have become cumbersome — offering limited accuracy and requiring manual data stewardship. To stay competitive and drive growth, modern financial services firms are realizing the need to transition to a new approach to creating a single, trusted, and accurate 360-view of their customers.
Large insurance companies successfully use Verato® at mission critical scale. Verato provides the leading identity data management platform designed to deliver best-in-class matching accuracy across identities. Verato enables financial services companies to delivery an incremental ROI, starting with Verato Auto-Steward® on top of an existing solutions, which streamlines data stewardship tasks, all the way to replacing an existing solution with the full Verato Universal Identity™ platform.
50M unique customer identities resolved
3M duplicate tasks eliminated
Challenge
Resolving 50 million unique customers across several lines of business
One insurance firm had over 50 million unique customers across several lines of business (i.e., car, auto, life, property, etc.) and an existing Master Data Management (MDM) technology which served as their Customer Data Integration “hub,” but it faced several challenges:
- Cross-selling disconnects: The firm wanted to enable a single view of customer across lines of business to improve cross-selling and properly implement multi-policy discounting.
- Data privacy distrust: The firm wanted a more trusted solution to enforce data privacy and customer security requirements.
- Customer experience chaos: The firm was falling behind in resolving fragmented customer data which impacted customer service.
- Data stewardship overwork: The data stewardship team had to deal with a workload of 4M data stewardship tasks created by MDM that required manual review and processing.
- Accuracy issues: Existing MDM solutions couldn’t meet expectations for accuracy, performance, and integration.
Solution
Augmentation strategy of an existing MDM for a cost-effective solution
The firm partnered with Verato to leverage an augmentation strategy of an existing MDM solution creating a cost-effective solution. The addition of Verato Referential Matching® and Verato Auto-Steward® enabled:
- Automation of 50% to 75% of duplicate suspect tasks created by the legacy MDM solution, eliminating approximately 3M tasks and saving an estimated $18M.
- Enablement of the data stewardship program to cope with high volume and growth of customer data.
- Enforcement of data privacy and security requirements with in-memory processing.
Results
Modernizing legacy MDM technology with a scalable architecture to achieve a single enterprise-wide view of the customer
Partnering with Verato, the firm modernized its MDM solutions with a scalable architecture to achieve a single enterprise-wide view of the customer journey. Verato Referential Matching® and Verato Auto-Steward® resolved 50 million unique customers for this insurer, eliminating 3M duplicate tasks and saving an estimated $18M. The company was empowered to create tailored products and make personalized offers thanks to this single view of the customer, and meet regulatory compliance standards, such as PII.
Improved customer experience: Improved omni-channel experiences by offering tailored products, proactive support, and user-friendly digital interfaces
Trust in decision making: Reduced compliance and security risks
Improved customer retention: Increased customer satisfaction with accurate multi-policy discounting
