Data, Data, Data

How your agency’s data health is crucial to protecting and growing your business

by: Stephen Caldwell

When it comes to tracking, managing, and reporting data, each agency, company or individual will have their own priorities. Whether you’re tracking Premium totals, retention, new business, umbrella, or BOP, all agencies can benefit from two things: Data Integrity and Data security. Below are some insights into my own experiences digging through spreadsheets, graphs, and digits to accomplish these objectives.

Data Integrity

Every company/agency, big or small, needs qualified data. How you obtain, process, and analyze that data varies from personal graphs and spreadsheets to a wide array of CRM and management systems. In today’s world, efficiency and innovation are keys to maintaining low overhead costs and maximizing profitability. Three areas where companies can struggle with data integrity are: Identification, Standardization, and Separation.

Identification: What are your company’s needs, wants and wishes?

Just like when you’re looking to purchase your own home, you have your “must have” list, but the indoor swimming pool, basketball court, and 10 car garage are just nice bonuses that certainly aren’t requirements. In the data world, “needs” are the things your company can’t live without. While identifying these things may sound easy at first, you will quickly realize what’s missing with the first set of reports when someone says, “Can we see this broken down by X, Y or Z?”  

To identify holes in your data, take your current level of data reporting and try to get to the most granular level possible. Typically, these holes or gaps are the product of one of the following:

1. Habit: “This is how we did it years ago and it worked,”
2. Limitation: “Our system can only have X number of fields,” or,
3. Ignorance: “I don’t think we can do that.”

All of these can be chinks in the armor that keeps your agency from reaching its full potential.

So what SHOULD your data priorities be? My personal recommendation for minimum data point priorities include:

• Time Period- (Day, Week, Month, Year)
• Carrier- (Liberty, Travelers, CRC, RPS, Foremost, etc)
• Line of business- (Home, Auto, Umbrella, BOP, Workers Comp, etc)
• Classification- (Personal, Commercial, Life, Flood)
• Type- (New, Renewal, Endorsement, etc)
• Premium & Commission
• Honorable mention: Rate, Effective Dates, and Expiration Dates

Standardization: Homeowners, Homowers, HomeOwn, HO, H

Regardless of which data point your agency/company wants to prioritize, to have reliable and efficient reporting you need to have standardized processes and naming conventions. Standardization is one of the hardest changes to implement because every company has the same goal, to grow. The larger the company and therefore amount of data, the harder implementing a new standard becomes. Planning around implementation is crucial. If you’re working in spreadsheets, utilize YouTube for quick demonstrations on formulas and simple functions that can expedite the transition. If you’re utilizing a management system, make an organized plan to tackle segments of data over time so that full implementation will take effect by the target date.

My personal recommendation for implementing standardization is to take 3-6 months to identify the data set/s, finalize the categories/descriptions, and create a plan to be fully implemented at the start of a new reporting year.  

Separation: Florist, Barber, Restaurant, 1968 Mustang. (One of these things is not like the other.)

Even if you have all the necessary datapoints identified and a standardized naming structure, having data in the wrong bucket can negatively impact your profitability. Separation of data is the final step in ensuring data integrity. People and even machines will inevitably make mistakes. The key to maintaining proper separation of data is structure and auditing. “Catch-all” is a common term used to describe the bucket into which we toss anything we can’t classify. By using some of the methods of Identification and Standardization listed above, you’re eventually able to remove this bucket from your reports.

Regardless of company size, everyone needs to have a second pair of eyes looking over the data to question and confirm. Separating green M&Ms from red ones seems like an easy task at first, but as the pile gets larger the reds can get buried underneath the green. It doesn’t need to be every hour or day, but your agency needs to decide on a reasonable period of time that an audit of the data occurs.  

I recommend having a recurring audit of data quarterly, semi-annually, or annually depending on the capabilities of your agency. Saying “we don’t have the time” can lead to an even bigger time and money investment in the future, than finding an accounting firm or setting aside the time to do it.

Data Security

“Bad actors” abound in all industries and do everything they can to try and disrupt your workday. However, even without hackers and thieves, your data can be lost due to natural causes or even good old-fashioned bad luck. Luckily there are multiple options that can protect your data such as data backups, multifactor authentication, Cybersecurity Insurance, IT vendors, management systems, and more.

Data Backups: From a USB stick to a Cloud

Each company stores their data differently, but many can be categorized into physical or cloud. Each has pros and cons, but how you choose to back up your data depends on cost, amount of data and type of data you need to secure. Some may find that having a USB stick or external hard drive is sufficient for their needs, while others may have virtual backups that capture the company’s network and files every few hours. The main thing is that you have a method of recovering your data and that it's recent enough to be relevant.

Multifactor Authentication: the annoying text prompt or application code

With hackers on the prowl, multifactor authentication presents a cost effective first line of defense against attackers. There are numerous applications ranging from Google, Microsoft and Duo that provide ease of use and implementation. The 30-60 seconds it often takes to get the code is frustrating and feels time consuming sometimes, but it is a much better alternative to thousands or millions of dollars in fines and court costs you may be on the hook for if your data is breached.

Cyber Insurance, IT Vendors and Management Systems: It’s okay to get a helping hand!

When your computer gets hit with ransomware, “Who you gonna call?” Here’s a hint, it’s not the Ghostbusters! The insurance industry is a large target for hackers due to the amount of personal data agencies handle on a daily basis. While the unicorn of an insurance agent that has a sales, analytical, and IT mind may exist, it is safe to say it’s rare for one person to be able to think about and handle all of these things.

So seek assistance! There are many carriers that provide excellent levels of coverage and support through cyber insurance policies. Likewise, there are many local, regional and national vendors that provide IT support services to help protect and prepare your company should the worst occur.

Finally, most management systems come with their own level of security and data encryption. If you utilize an IT support vendor, have them audit your management system or help you find a management system to ensure you have the level of data security required of you and your business.

My personal recommendation for data security is to check the regulations in your state, consult with a cyber insurance representative, and weigh the options on how to best protect your company within your financial means.