Accenture research shows that most insurers’ growth strategy hinges on customer acquisition and retention, as well as increased cross- and up-selling. Yet, the same research shows that many insurers believe their current distribution capabilities prevent them from providing a differentiated customer experience.
Keys to success
Survey respondents were in remarkable agreement about the capabilities that will lead insurers to success:
- Building meaningful differentiation.
- Focusing on customer responsiveness.
- Providing customized experiences.
- Seizing market share.
Of course, that begs the question: how can insurers develop these capabilities, effectively and efficiently? The answer: predictive analytics.
Predictive analytics is more than data analysis. It allows insurers to convert data into valuable insights on customers, agents and markets. It plays a critical role in guiding effective, fact-based strategies.
When it comes to insurance distribution, the use of predictive analytics is still evolving. Yet, it offers tremendous advantages to the insurer who can transition from “what happened” to “why is it happening”—leading ultimately to “what will happen.”
Furthermore, it offers insurers the ability to advance in three critical areas:
- Understanding customers.
- Targeting the right markets.
- Hiring and deploying the right agents.
Though growth will not be easy over the next few years, insurers have an opportunity to use predictive analytics to transform their business. By unlocking business intelligence and enabling smarter decision making, insurers can drive profitable growth.