Embracing Admin Data for the Census: A Data Analyst's Perspective from the Insurance Sector

As a data analyst working in the insurance sector, I have a great appreciation for the pivotal role that accurate and comprehensive data plays in our industry. Recently, the proposal by Statistics NZ to overhaul the traditional census and transition to an "admin data first" approach has sparked considerable debate.

Thursday, February 27th 2025, 9:13AM

by Russell Hutchinson

Ed Foster, BA, Data Scientist, Quality Product Research Limited

As a data analyst working in the insurance sector, I have a great appreciation for the pivotal role that accurate and comprehensive data plays in our industry. Recently, the proposal by Statistics NZ to overhaul the traditional census and transition to an "admin data first" approach has sparked considerable debate. From my perspective, this shift is not only necessary but also a positive development that holds immense potential for improving the accuracy and efficiency of our work in insurance.

The Case for Admin Data

Admin data, which comprises information already held by government agencies and private sector organisations, represents a treasure trove of up-to-date and detailed insights. Every interaction New Zealanders have with entities such as IRD, the Health Ministry, and various social services contributes to this rich dataset. This continuous data collection helps ensure that admin data is current and reflective of the latest demographic and socio-economic trends, unlike the traditional census, which is conducted only once every five years.

In the insurance sector, timely and precise data is crucial for accurate risk assessment, policy pricing, and customer profiling. The traditional census, with its inherent lag and declining response rates, often falls short in providing the level of detail we require. The 2018 census, for instance, had the lowest response rate in 50 years, a trend that poses significant challenges for data reliability. The admin data approach promises to bridge these gaps, offering a more dynamic and responsive data source.

Potential Benefits for the Insurance Industry

1. Enhanced Risk Profiling

Admin data could enable us to create more accurate risk profiles by integrating various data points, such as income levels, health records, and employment status. This comprehensive view would allow insurers to tailor their products more effectively, ensuring that policies are both fair and appropriately priced.

2. Improved Data Accuracy and Timeliness

With admin data being continually updated, the information being relied upon would always be current. This reduces the risk of basing decisions on outdated data, a common issue with the traditional census. For instance, accurate demographic data helps insurers predict trends and adjust their offerings to meet emerging needs promptly.

In conclusion, while the benefits of admin data are clear, it is essential to address valid concerns regarding privacy and data accuracy. Robust data protection measures must be implemented to ensure that personal information is safeguarded against breaches. Transparency about how data is used and the steps taken to protect it will be crucial in maintaining public trust.

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