Challenges of establishing a data governance framework in the South African life insurance industry
Date
2015
Authors
Forte, Lovashnee
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
ABSTRACT
Life insurance companies are extremely data intensive; collecting and storing current and historical customer data for various reasons such as marketing campaigns, assessing insurance risks, and as part of the actuarial and underwriting processes. Recent legislation pertaining to the manner in which customer data can be used, coupled with the Solvency Assessment and Management (SAM) regulations from the Financial Services Board (FSB), have amplified the need for life insurers to take a holistic approach to managing their data assets.
A data governance framework provides principles and guidelines to ensure that data meets the expectations of all business purposes in the context of data quality, ownership, compliance, privacy, and security. Although the benefits of establishing a data governance framework are unquestionable, the challenges associated with designing and implementing such a programme have hindered the progress of many life insurers in this arena.
This study makes use of in-depth interviews analysed with content analysis and cognitive maps to explore and uncover the main challenges life insurers have experienced, as understood from senior individuals who have been involved with data governance initiatives at their organisations.
Organisational culture, the lack of ownership and accountability, a silo approach to data management and the absence of guiding policies, were cited as the most common obstacles to the successful implementation of a data governance framework. The FSB’s SAM regulations were found not to be a big driver of data governance from an operational perspective.
It is clear that life insurance companies face a number of challenges in establishing a data governance framework however, these are not insurmountable. The recommendations from this study can provide some guidance for life insurance companies wanting to establish their data governance frameworks and for those wanting to build on their current data governance capabilities.
Description
MBA 2015
Keywords
Management information systems,Database management -- South Africa,Life insurance