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Digital Matrix Systems: Unleashing the Power of Data through Advanced Analytics

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David Graves, Executive Vice President, Digital Matrix SystemsDavid Graves, Executive Vice President
Accessibility to data is key to the digital transformation that helps insurers drive the customer experience and improve decisions. However, insurance companies face many challenges related to data access and management. The proper handling of credit data is not easy, and regulations governing the use and storage of FCRA data are complex. To make things even more difficult, insurers require significant resources for ongoing support of credit bureau changes. To ease this burden on insurers’ IT departments, Digital Matrix Systems (DMS) provides products and services that support the automation required for digital transformation and growth in the insurance industry. DMS focuses on minimizing insurers’ IT resource commitment through data management and governance— freeing them to focus on their core business processes. Besides, with well-established expertise in credit scoring and data access, DMS offers a comprehensive approach to analytics that is proven not only in the insurance space but also in the financial industry. The company supports digital underwriting and provides analytics that strengthen automated pricing and policy decisions. “Our approach has evolved from simply providing data access to helping leading companies harness the power of that data through advanced analytics,” says Mark Dreux, Vice President of Business Development for DMS.

DMS helps complete the entire analytic cycle by providing support in two key areas. One is a new program to be launched soon called TEST/DRIVE™ which will allow companies to easily evaluate new data sources through a unique approach that is both cost-effective and risk-averse.

“Essentially, we are reducing contractual complications and enabling ‘one-stop shopping’ in the realm of data access,” explains Dreux. The company’s centralized connectivity approach eliminates data silos and makes it easy to establish an interface between multiple lines of business, loan/policy origination systems, and external data sources. “Elimination of data silos is necessary for the support of our clients' omnichannel strategies, to ensure seamless customer experience and exceptional customer service.”

To support implementation testing, DMS offers a solution called DMS TestLab™. Currently in beta release, DMS TestLab will enable financial services and insurance companies to test their applicant loan or insurance rate decisions via access to customized populations of test credit reports. Specific data content, attribute, scorecard, and regression testing are augmented with throughput volume and peak load tests. From a compliance standpoint, DMS ensures that clients’ data is handled and stored in with all applicable regulations in mind. In addition, the company maintains industry security certifications and monitors compliance requirements on behalf of clients.

Clients rely on DMS for gaining connectivity to the data sources they need and building custom models that will help them competitively and effectively price insurance policies. A top 10 property and casualty insurer wanted to shift from a third-party model for insurance scoring to building their own custom model to remain competitive. The client embarked on a project with DMS and benefitted in several ways, including data security. Personally Identifiable Information (PII) was being stored on the client’s systems, where it was accessible by many employees. DMS worked with the client to customize the response, suppressing the sensitive data and returning only the elements needed for rating. All data was stored on the DMS Data Warehouse™ allowing the client to secure their systems and supported enterprise PCI compliance, in addition to meeting their updated segmentation goals.

Being uniquely positioned to help insurance companies understand their customers and more effectively predict and manage risk, DMS is constantly adding new data sources in North America across all its verticals. At the same time, the company is expanding its footprint internationally including Mexico and the U.K. These international expansion efforts will deliver credit and potentially provide support of small commercial carriers and lenders in these countries.