Insurance carriers that offer top-notch customer experiences are 80% more likely to retain customers than companies that don't. They are also more likely to cross-sell and receive referrals.
The secret to creating better customer experiences? Insurtech data.
Insurance technology or ‘Insurtech’ arose from the belief that the insurance industry was ripe for innovation. The data collected via these platforms can help carriers manage risk and maintain competitive rates by using analytics to improve claims, policy, and sales efficiency — but that’s just the beginning. By analyzing data trends to predict customer needs, carriers can also better support customers, suggest relevant products, close sales, and improve their bottom line.
Carriers can leverage data from Insurtech platforms to inform their business decisions in several ways. First, by collecting and analyzing data on policyholders' behavior and risk patterns, carriers can refine their underwriting processes and pricing strategies. This information can help carriers identify emerging risks, adjust pricing models to reflect actual risk, and optimize their product offerings to better serve customers.
For instance, carriers can use Insurtech data to segment customers by their risk profiles and tailor policies accordingly, which can improve customer satisfaction and retention. Additionally, data from Insurtech platforms can help carriers better understand customer needs and preferences, enabling them to develop new products that meet these evolving demands.
According to WTW, more than two-thirds of insurers currently rely on predictive analytics to reduce issues and lower underwriting expenses, and a majority (60%) say that data has helped increase sales and profitability.
Insurtech data can also help carriers streamline their claims processes and reduce costs. By using data analytics and machine learning algorithms, carriers can quickly identify and flag potentially fraudulent claims, minimizing payouts and reducing losses.
Finally, Insurtech data can be used to automate claims processing and settlement, improving efficiency and reducing administrative costs. By integrating Insurtech platforms into their operations, carriers can gain greater visibility into their business operations and performance, allowing them to identify areas for improvement and make data-driven decisions to optimize their business outcomes.
Some traditionalists look at insurtech as a disruption that is depriving the industry of its personalized touch and deep relationships. Undoubtedly, some insurance professionals will always prefer to do things ‘the old-fashioned way.’ However, by embracing insurtech and leveraging the power of data analytics, carriers can enhance their competitiveness in a rapidly evolving market and deliver more value to their customers.
Insurtech data not only benefits carriers and the agents and policyholders they support, but it can also benefit brokerages on a larger scale by helping create new business opportunities and uncover previously overlooked ones.
To identify these opportunities and drive growth, brokerages must ask themselves the following questions, which can be answered with Insurtech data.
Think about what could be gained by having the answers to these and similar inquiries. By analyzing data trends to predict customer needs, carriers can better support customers, suggest relevant products, close sales, and improve their bottom line.
Simply put, using Insurtech data can provide insurance carriers with valuable insights into customer behavior, risk patterns, and operational performance, helping them refine their underwriting, pricing, and product development strategies, as well as streamline their claims processes and reduce costs. By embracing insurtech and leveraging the power of data analytics, carriers can enhance their competitiveness in a rapidly evolving market and deliver more value to their customers.
As more insurtech companies enter the market and refine their offerings, “traditionalists” may find themselves thawing somewhat in their attitudes.