It’s a new year and many businesses are seeking to revamp or replace their technological systems to keep up with trends and the best business practices. However, updating your technology shouldn’t mean losing or complicating your data and information. When an insurance company seeks to replace its core insurance system (CIS), it faces the difficult issue of maintaining continuity of data for reporting and analysis. Data-continuity is especially important for actuarial reserving and pricing, as well as for regulatory reporting. Yet this is an avoidable issue, and having an InsFocus DW and Business Intelligence (BI) solution can aid in this process in order to make switching systems much smoother.
Normally when the CIS is being replaced, the older information stays locked in the old system’s database, and new information is built-up in the new system’s database. This creates problems with reporting when the company’s information is being stored in two separate places under different logical and physical models. On top of that, the replacement of the old system typically cannot be done at once. So, companies normally go about such transformation projects in tranches by each line of business (LOB) or group of LOBs – which makes the collection of data for reporting and analytics even more difficult. Depending on how long the process takes, your business users could be struggling for quite a while to get coherent data.
To make this process easier, an insurance company can benefit from having a universal DW model and reporting application in place. This universal DW model is independent of the data structure of the source systems and enables the company to maintain their data-continuity and avoid a costly and risky historical data migration project. This is particularly useful if the CIS replacement is being executed piece by piece and one LOB at a time. The information from the old system and the information from the new system must come together into one unified data warehouse. That way, everything is easily accessible in one place when it is needed for reporting and analytics.
When building the unified data warehouse, specific data dimensions are designed to accommodate for the combination of the two source systems’ data, such as a product code dimension containing mutual products (e.g. Motor), while maintaining separate dimensions for “old system product” and “new system product.” Another example is an organizational structure dimension containing mutual data (e.g. Agent), while maintaining separate source systems’ dimensions. All of this guarantees that your data comes together in the end instead of being locked in separate silos after the system change. Moreover, the factual data (policies, claims) are built in uniform fact tables, allowing analysis over consecutive reporting periods transparently.
Overall, it is important for an insurance company to have a universal DW model in place when considering replacing the core insurance system. This keeps your information safely synthesized into one location so that you can continue normal reporting and analysis of data. InsFocus Business Intelligence has the solutions and experience for keeping track of data and making reporting and analysis easy, but the universal DW model is critical for a smooth transition between core insurance systems. Updating your business shouldn’t mean that you lose access to previous information or have to make sacrifices.