How Insurers Can Use Customer Data To Their Advantage

Offering service with individual value is a goal for most insurance agencies and their brokers, but in modern times this is becoming increasingly difficult with a digitally dexterous client base.

McKinsey found that people looking for insurance now bounce between multiple channels.

“Today they increasingly expect to interact with their insurance provider on their own schedules, at all times and through multiple channels (e.g., phone, online self-service, click-to-chat).

Furthermore, customers expect a consistent, satisfying experience at every interaction. As a result, the walls between traditional distribution channels are crumbling.”

Falling walls shouldn’t be seen as a scary prospect, by lowering boundaries between data pools there is the opportunity for insurance brokers to have a more complete view of customer interactions and interests across multiple touchpoints. This kind of visibility can aid them in creating specialised models that are tailored to each client.  

How can they do this?

By making customers the centre of their data strategy

Being agile is vital in the current ecosystem. Insurers can manage new customer expectations by using data to create more precise risk assessments, reduce churn and strengthen broker- carrier relationships.

Assessing Risk

With the internet of things (IoT) customer data can be determined through connected devices. In the case of automotive insurers, connected sensors on vehicles can give a clearer picture of exactly what occurred during an incident and judge based on a precise individual experience.

Reduce Churn

Using data to reduce churn means implementing technology to make use of each customer’s journey. Predicting behaviour is the secret to determining churn and lowering the rates. This can be done with the right analytics.

Broker relationships

Brokers should be the experts of the service offered by insurance carriers, but with more data on the table, their jobs will change from being universally informed to specialising in specific fields. Carriers and agencies can strengthen their relationships with brokers by including their expertise in how they collect and segment data in their strategy.

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