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Data Transparency: How Do Insurers Use Data to Outperform Competition?

By May 6, 2021February 27th, 2024No Comments

The insurance world has become digitized, but what is the true value of all this data?

Data can help transform insurers into efficient, goal-oriented providers with measured customer satisfaction. With many use cases, third-party integrations and innovative strategies, it’s easy to get lost in all the data, and just as difficult to measure the value of your data.

WaterStreet Company is here to help inform insurers of ongoing P&C insurance industry trends. We are a provider of P&C Policy Administration Software, supporting insurers through policy and claims administration, document management, third-party connections and more.

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1. Omnichannel Distribution

Reaching customers has always been a priority for insurers. Traditional methods have focused on direct mail, TV and radio commercials, however modern digital marketing tactics allow insurers to attract customers through a more precise funnel.

Omnichannel distribution is the method of using many different channels to offer a seamless buying experience through various touchpoints. These touchpoints include traditional advertising as well as email, social media, live chat, website self-service, comparative pricing tools, progressive web apps and digital advertising such as display and paid search marketing. All touchpoints lead back to your single, unified P&C insurance solution for easy management as data enters your system.

With digital advertising, insurers have the ability to target specific audiences, whether by age range, location, similar interests, websites browsed, previous searches, social media interests and more. Marketing teams are able to set KPIs to spend budget intelligently with upper funnel and lower funnel tactics, guiding users through a digital customer journey. These methods of marketing capture younger audiences that may not be part of traditional marketing for brand awareness.

Bottom Line:

  • Expand marketing channels to include digital advertising with precise audience segmentation.
  • Use KPIs to optimize campaign performance, gaining the greatest share of leads for minimal budget.
  • Gain access to younger demographics who engage less with traditional marketing methods.

2. Third-Party Data

In many cases, insurers can leverage data from third-parties to create remarkable offerings. P&C insurance solutions with built-in APIs, such as WaterStreet Company’s solution, have the ability to connect to any number of third-party data providers.

For example, Allstate has created a GoodHome service, pulling from 9 APIs to deliver information to policyholders through Google Maps, Weather Underground,Berkeley Lab Home Energy Saver and more. This information helps policyholders protect and care for their property as an additional service provided by the insurer. This solution may help retain customers who enjoy additional features for monitoring their property, and the service can act as a lead magnet for new customers.

Many other applications of APIs can help internal processes for insurers, including payment processing, risk assessment and claims management. APIs open pathways between insurers and integrating solutions, making creative, safe and intuitive solutions possible for the insurer. A cost benefit analysis of your third-party data will help shed light on the true value of these investments.

Bottom Line:

  • Consider creative out-of-the-box strategies for engaging current and new customers.
  • Leverage APIs to fit your team’s unique offerings.
  • Run a cost benefit analysis to consider time saved, customers retained, data accuracy and more unique measurements based on the data gained.

3. AI in Claims Processing

Unstructured data poses a unique challenge to insurers collecting large amounts of data. Claims data is often unstructured, including videos, images and written documents, such as police reports.

Artificial intelligence has been adapted for claims processing, acting quickly on the FNOL to resolve claims in remarkably short periods of time. One carrier, Lemonade, has solved claims in a matter of seconds. Insurers that require days with manual review of each claim can easily become inundated with claims, especially in the case of catastrophes, and require claims triage.

Bottom Line:

  • Improve customer satisfaction with faster resolutions.
  • Consider technology for automation the claims process, saving valuable employee time that would otherwise be split between tasks.
  • Have a plan in place for claims triage to prevent prolonged open claims, which frustrates the customer and overextends in-house resources.

About WaterStreet Company

WaterStreet Company is dedicated to serving all facets of the Property & Casualty Insurance Sector. Many incumbent insurers are held back by dated legacy systems and can aim for better technology to detect fraud.

We understand the importance for carriers and MGAs to adapt to market changes.

Reach out to WaterStreet Company today to request a consultation and demo of our solutions.

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