Insurance is a tough business today and carriers face myriad competitive pressures. Customers are better informed and have more channels to shop for insurance than ever before. And these customers expect instant and special service—online access to their information, instant ability to file claims on mobile devices, quick settlement of claims—all at the lowest possible cost to them.

Meanwhile, investment returns have been at historically low levels for the past several years, which spotlights the importance of underwriting results, adds pressure on expenses, and increases the prioritity of new initiatives. And as consolidation within the industry continues, insurers look to decrease expenses, invest in new technologies and grow their market share in the broad market. For those insurers that are not one of the industry behemoths, survival means establishing strategies that focus on portions of the market that require unique products, specialized insights, or customized service. The bar of competition in personal lines insurance has been raised, and there's little prospect for it to get easier in the future.

What is the secret to competing in the increasingly challenging personal lines markets? Is it enough just to work harder than the other guy? No. Don't work harder, work smarter. It's more important than ever in today's environment to make decisions—or those great innovative leaps—only after quantifying, understanding and evaluating the inherent risks. Working smarter means making decisions based on solid data and information derived from a robust data and analytics capability.