Milestone 3 Portfolio Literature Review Assignment

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 According to Małek (2020), data governance is like a framework for showing that

behavior is appropriate when creating, consuming, managing, and analyzing data. Simply put, it's

about deciding how to manage, control, and utilize the growing and complex data. Within a

company, various tools such as ERP (Enterprise Resource Planning) generate daily data, which

is used and accumulated by front-end users.

The issue of data governance in insurance industry has attracted a lot of attention from

scholars. First, the reason why data governance is gaining traction is because many companies

are moving towards data-driven policies. This is evidenced in the findings by Williams,

Chaturvedi & Chakravarthy (2020), which revealed that digitally savvy start-ups like Lemonade

are using digital tools to offer a more personalized and cheaper insurance experience, which has

confused existing insurers. Consumers tend to switch to digital native insurers, coupled with the

general lack of trust in insurers. Traditional insurers run the risk of further loss of profitability if

digital transformation fails. Williams, Chaturvedi & Chakravarthy (2020), further observed that

insurers are also faced with increased cybersecurity risks due to the sensitive customer

information they manage and increased regulatory oversight of the storage and use of this

information. Similarly, Haneem, et al., (2017), for example, reveals that in today’s data-driven

companies, data duplication, inaccuracies and inconsistencies are common. This is true because

the more the same functionality is duplicated throughout the enterprise, the more complicated it

is to manage and the more costly it is. It also increases security risks because it is difficult to

understand. Therefore, we will clearly separate the functions that are common to the entire

company and the functions that are required for each department, and provide each as a service

so that it can be shared within the company. By doing so, operation / maintenance and security

measures costs can be aggregated, and troubles can be dealt with more quickly. For example,
Bessy-Roland Boumezoued & Hillairet (2021) reveals cyber attack as one of the most common

risks facing modern companies such as insurance companies. No matter how much the company

has set up defense measures against cyber attacks, it is difficult to completely prevent cyber

attacks because the attackers continue to have an overwhelming predominance of attackers, such

as changing the attack method and bypassing the measures.

Morabito (2015) reveals that typical use cases of data governance include streamlining

data analysis, data intelligence represented by AI and machine learning, compliance with other

laws and regulations such as GDPR (General Data Protection Regulation), and data for creating

business value. Data governance is not achieved with the introduction of any tools or solutions. It

is important to combine internal efforts such as privacy and information security policies, data

storage mechanisms and arrangements. It entails reviewing the organizational structure,

developing various policies, reviewing various processes, and introducing risk and compliance

management. It also entails defining data owners, managing data quality to organize data neatly,

and realizing data portability for optimal placement between cloud and on-premises.

One of the strategies taken by insurance companies as far as data governance is

concerned includes moving to cloud. This is according to the assertion by Mastroeni, Mazzoccoli

& Naldi (2019), where they observed that most insurance companies consider moving to cloud

as a way of expanding their data storage capacities. On-premises systems usually have to carry

excess resources, but in the cloud you can scale up as many resources as you need, when you

need them. Therefore, it is possible to dramatically reduce TCO (total cost of ownership).

Artificial Intelligence (AI) is possible solution to some data governance issues in

insurance companies. According to Hall (2017), the introduction of AI, which helps solve

corporate problems such as solving labor shortages and improving operational efficiency, has
great benefits for customers, such as being able to receive prompt and accurate responses at any

time. Therefore, it is introduced in every scene from contracting with customers to after-sales

follow-up, various changes and procedures required for insurance claims.

Introduction of mobile customer support is considered another possible remedy to the

data governance issues. Małek (2020) suggest that by using mobile support systems, it is possible

to address many governance issues. Major companies provide customer-specific pages on the

Internet. Many can register damage status and photos, enabling quick insurance payments. In the

event of a disaster, the companies will take measures to send information to all subscribers in the

disaster area in order to prevent omission of bills. The same is echoed by Nuruzzaman &

Hussain (2020), who revealed the role played by chatbots in addressing security issues especially

from user end. When a customer is flooded with telephone inquiries and the operator is busy or

the telephone line is tight, the chatbot will take the place of the customer's anxiety.
 References

Bessy-Roland, Y., Boumezoued, A., & Hillairet, C. (2021). Multivariate Hawkes process for

cyber insurance. Annals of Actuarial Science, 15(1), 14-39.

Hall, S. (2017). How Artificial Intelligence is changing the insurance industry. The Center for

Insurance Policy & Research, 22, 1-8.

Haneem, F., Ali, R., Kama, N., & Basri, S. (2017, July). Resolving data duplication, inaccuracy

and inconsistency issues using Master Data Management. In 2017 International

Conference on Research and Innovation in Information Systems (ICRIIS) (pp. 1-6). IEEE.

Małek, A. (2020). Internet of Things (IoT): Considerations for Life Insurers. In Life Insurance in

Europe (pp. 177-202). Springer, Cham.

Mastroeni, L., Mazzoccoli, A., & Naldi, M. (2019). Service level agreement violations in cloud

storage: insurance and compensation sustainability. Future Internet, 11(7), 142.

Morabito, V. (2015). Big data governance. Big data and analytics, 83-104.

Nuruzzaman, M., & Hussain, O. K. (2020). IntelliBot: A Dialogue-based chatbot for the

insurance industry. Knowledge-Based Systems, 196, 105810.

Williams, C. M., Chaturvedi, R., & Chakravarthy, K. (2020). Cybersecurity risks in a

pandemic. Journal of Medical Internet Research, 22(9), e23692.