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The benefits of data quality in preventing catastrophic losses

Richard Jones Archive

Despite the struggles of the current economic crisis, some businesses are continuing to grow and expand, becoming larger corporations. With this growth come higher profits, a larger and more capable workforce and possible presence in international markets. However, there are some inherent dangers with growth and expansion.

As companies become bigger, they ultimately have much more at stake, which could possibly result in catastrophic losses. To prevent such occurrences, it is increasingly important for businesses of any size to invest in data quality management solutions, as Insurance Networking writes.

Furthermore, eCityRisk reports that data quality was recently identified as the No. 1 concern for businesses based on a recent Ernst and Young survey of underwriting offices, since quality is analyzed by rating agencies in an attempt to minimize loss.

High-quality data is essential for effective catastrophe risk management. By investing in obtaining, evaluating and storing up-to-date and accurate data through stringent verification, cleansing and deduplication methods, companies can substantially limit the potential losses associated with poor quality data.