Getting 50 percent of a target group to achieve good-to-excellent results from a software tool might be the goal for some product providers. However, the value of business intelligence in the insurance industry is such that 50 percent seems like a low percentage to an industry analyst such as Matt Josefowicz.

The percentage of carriers doing good-to-excellent work in BI, he believes, should be higher than the 50 percent that responded in that manner in the study completed by Novarica, where Josefowicz serves as director of the insurance practice.

“The fact that only half said their business intelligence capabilities were good or excellent means half the industry doesn't have good BI capabilities, and that's a big number, especially when the insurance industry is so dependent on analyzing information to make decisions–that's at the very core of the business,” says Josefowicz. For many insurers, “there is a lot of discipline around business intelligence from the underwriting side. There's a lot more information available for underwriting and things such as marketing and optimizing operations. But still there are a lot of [different] decisions that need to be made.”

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