A new survey of data scientists, including those in the insurtech sector, reveals that the vast majority have significantly improved their model results by using external data – yet poor quality data is also their number one challenge.
The report, “The Importance and Impact of Using External Data to make Critical Decisions”, by Doorda, a British analytics-ready data provider, is based on a survey conducted by OnePoll. It analyses the impact of using external data to innovate and capitalise on new commercial opportunities.
Despite 92% of the 300 data scientists surveyed stating that their models had been significantly improved at some point by adding external data (29% improved a lot, 63% improved somewhat), 40% of them also said that they had used data that later proved untrustworthy or unavailable. Their main challenges when integrating external data were poor data quality (34% of top-three answers), incomplete data (33%) and incompatible data (31%).
MULTI SOURCE DATA
Clifford McDowell, Founder and CEO of Doorda, said: “So many insurtech businesses are now incorporating technologies that encompass complex data analytics. Whether it’s revenue growth, personalisation, assessing and managing risk, security or sustainability considerations, our research shows that businesses are looking to data analytics and data science to thrive.
“Insurtech companies hoping to compete successfully must look for improvements in the quality of the data they discover and integrate into their analysis in order to drive innovation.”
The survey also revealed 140 different job titles being used where the respondent’s role is principally data science and data analytics, bringing into question whether companies appreciate how widespread and important data science has become within their own organisations.
External data is clearly important for the data scientists surveyed, with the majority (70%) of their models containing at least 20% of externally-sourced data and 78% stating that adding new external data had at some point exceeded their expectations. The vast majority, 98% of respondents, are convinced that it’s important to regularly investigate external data.
The survey of 300 people, conducted in June 2023 by OnePoll, included those responsible for data science, data analytics and predictive models. They worked in the insurtech, insurance and pensions, financial services, fintech, and professional services sectors.
You can download a copy of the report, The Importance and Impact of Using External Data to make Critical Decisions, here.
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