The influence of data management on a firm's performance in our local insurance industry

Abstract

Data is one of the most fundamental assets for insurance companies. It forms the basis of every decision made by an insurer. The main aim of the study was to establish how the management of data affects the performance of insurance companies. This could be reached by identifying how data is stored and what safeguards are used against the loss of data, and analysing data security measures used by insurance companies. Furthermore, the use of data warehouses in the insurance industry was also investigated. Interviews were carried out with 5 local insurance companies, 1 foreign insurance company and the MFSA. The research consisted of open-ended, semi-structured, in-depth interviews aimed to establish the importance of data management in the local insurance companies. Insurance companies are aware of how valuable data is for an insurance company. In fact, firms ensure that they have enough storage capacities in place. Insurance companies store data in-house on various storage devices. They also store data offsite and do regular backups to safeguard against loss of data. Cloud storage is becoming increasingly important in the management of data. This system is still being studied in the local insurance industry. Secondary research showed that the amounts of data breaches are increasing. Data security measures include physical security, authentication and encryption. In the local insurance industry data breaches are not common. However, local companies highlighted the risk of stealing of data from current or previous employees. Secondary research also showed high failure rates when companies implement a data warehouse. However, the Maltese insurance companies have implemented a data warehouse successfully or are in the process of doing so. It was established that a data wa It can be concluded that local insurance companies have adequate data management systems in place. The use of Cloud storage will help the Maltese insurance companies to better manage their data. Furthermore, local insurance companies must ensure that they keep up with technological advancements.