You know data is valuable. It’s what we use daily to make decisions, and it’s what we use to measure our successes. But are you using data effectively in your agency?
A wealth of insurance tech is available to capture and manage data, and the coronavirus pandemic accelerated data use in the insurance industry. According to a survey from Insurity, over 80% of agencies plan to “invest more heavily in data and analytics” following the 2020 pandemic outbreak. And with good reason – Willis Towers Watson found that over 66% of agencies say data analytics helped them reduce expenses, and 60% say it helped increase sales.
How can you better use data in your agency?
How to Use Agency Data
There are multiple ways you can use your agency’s data to overall improve processes and positively impact your bottom line. Some of those areas include:
- Fraud prevention: Fraud claims amount to about $80 billion lost in the U.S. annually, and about 5-10% of insurance claims in the U.S. and Canada are fraudulent. By tracking and analyzing your claims data, you can minimize these fraud attempts.
- Policy decisions: Predictive analytics can help you decide what policies to write, which to deny, and when to gain more information to make a better policy decision.
- Policy pricing: Better data means better pricing for you and your customers, leading to improved customer retention and higher returns.
- Claims management: Predictive data analytics can signal which claims need immediate attention, helping you better prioritize claims and improve service.
- Customer retention: Quality reporting can signal customers who may be close to lowering or canceling their coverage and help identify ways to improve their experience.
- Cross–selling and up-selling: Reports can show you opportunities to increase coverage, benefitting your customers by keeping them safe.
- Marketing and personalization: Customer data can tell you a lot about which marketing methods work and how different types of customers like to receive information. Leverage that data to improve your outreach.
The Insurance Tech You Need
Before you put data to use, you need to capture and effectively view it. The second half of that sentence challenges most agencies: data is abundant but can be challenging to organize and interpret.
Quality insurance tech solves this issue. Modern systems are designed with data input and output in mind. Some of the top tech elements you need are:
- Customer Relationship Management (CRM) system
- Marketing automation system
- Business insights reporting
Along with these essential pieces, you also need an agency management system that can connect with modern agency tech. Cloud-based systems are much more effective in integrating with new systems and provide more robust data security than in-house server-based systems. As you focus on gaining more data, you should focus on protecting it, too.
Put Your Data to Work with Partner Platform
At SIS, we’re always looking for better ways to gain and interpret agency data for our customers. Our forward-thinking Partner Platform agency community told us they needed better data integration and business insights reporting, and we delivered. Our integrated Partner Platform agency management system and insurance CRM brings cloud-based security, data systems integration, and custom business reporting together in one system.