The insurance industry has always used data to inform their policies and associated risks, but with recent developments in big data and analytics capabilities, insurers are changing the way they think about data and expanding its use to all aspects of their business. As insurers gain access to more data than ever before, integration of analytics at the core of their systems is becoming increasingly important.
There are three data lakes which carriers can extract from their digital platforms: Application data, behavioral data and third-party data. When carriers are able to utilize this data and analyze it, they’re able to gain a deeper understanding of their customers’ needs and behavior throughout origination and build products and business processes to leverage those insights.
Application data is sourced directly from consumer applications and builds out customer profiles to show the demographic makeup of the market. This type of data has been traditionally used by the industry to mitigate risk and build out insurance products. This remains a cornerstone of the business, and with current technological advancements, insurers are able to pull even deeper and more accurate information from the consumer with organic questions than ever before. Insurers are able to build stronger application questions which allows them to build stronger products and provide better coverage for the consumer while mitigating risks.
Behavioral data focuses on how the customer reacts throughout the application process, whether that be understanding reactions to specific complex questions or preference of advisor assistance throughout different sections of the application. This form of data is sourced from the platform and both the consumer and advisor experiences are analyzed. This is a newer type of data in the industry, which only grows stronger and more accurate over time. This data analyzes information such as customer drop offs at different points during an application, portions that are skipped and returned to as well as how this type of information translates to conversion rates. With this, insurers are able to discover best practices and optimize cycle times, better understand how a customer is reacting to questions to ultimately meet their needs more effectively. Through analyzing interactions we can uncover developing trends to improve funnel conversion and placement rates.
Behavioral information coupled with application data allows insurers to properly reach and target consumers, understand how to incentivise them and maximize their marketing efforts to be able to meet customers with coverage that is right for them. This data allows for A/B testing, real time analysis of customer reactions to formulate and reformulate methodology and messaging to where customers are most responsive. Carriers are able to build their systems and applications in order to reduce risk and increase efficiency based on those reactions and allows insurers to tailor their services to real time insights in order to really engage the modern consumer.
Third party data looks at the business side of the transaction, whether that be advisor metrics, platform data or product data. This data is also pulled from platform tools and allows insurers to take a closer look at their supply chain and business processes. Carriers are able to see how their advisors are engaging with their platforms, what tools and processes they use for success and which advisors are performing vs. which require more support. These insights allow the carrier to optimize the business tools that they offer to their partners and provide support directly where it is needed in order to maximize efficiency. It also allows them to build their tools to align more with how their advisors are using them and succeeding with them.
One of the most important factors to insurance data and analytics is being able to customize the data that you receive so that you’re able to see the right data in order to solve the problems you need to solve. Data helps insurers make informed decisions. By optimizing our platform to receive more accurate data, we enable informed decisions that will be more effective and provide more coverage for clients in the long run. We use data to grow your business.