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Data analysis is a deep and complicated topic, and not one many insurance brokers want to dip their toes into – however, experts say that a solid data strategy can often be a key differentiator for clients when they are choosing who to work with.
Harnessing the immense amounts of data that a broker deals with is undeniably a daunting task. Nonetheless, there are endless benefits to doing so – it streamlines a broker’s front and back office, creates better customer engagement, and it can also influence the claims management process.
“There is no shortage of data available to insurance brokers,” Robin Chua, vice president – analytics, Australia at EXL Service stated.
“The problem has been getting access to the data, and analysing it in a meaningful way. Siloed data has long limited the ability for back-office efficiencies, however as information has become increasingly free-flowing, brokers are able to take a deeper look into their historical data.
“It is here brokers can find customers who have a history of past failures – leaving a vehicle unattended in auto accident claims, for example, or the lack of alarm maintenance on buildings in storm claims. Obviously, this helps limit losses.”
Chua says data can also provide brokers a ‘snapshot’ of a client’s activities and forecast any potential claims, and it has the potential to do this very quickly and thoroughly. Though recent developments in claims management software have made things somewhat simpler, there is still a lot of untapped potential across the board.
“Recently, broker claims management software has made access easier,” Chua explained. “These management systems create dashboards that provide an overview of a client portfolio, and they also have alert systems to identify a gap in coverage so clients can be called proactively to discuss possible solutions, which is a great value-add.”
“As in all areas of business, technology plus data is a game changer for insurance brokers,” she concluded. “In the right combination, businesses can build both efficiencies and analytic insights designed to assist in the decision making process. The problem is deciding where to start.
“Regardless of where you choose to begin, putting your data to work will create a competitive broker – one prepared to create savings and outstanding client service. It’s time to get started.”
