If only insurers could predict the future. If they could, they could know which customers were at increased risk of leaving—before they left—and take steps to prevent that from happening.
The truth is, that scenario isn’t so far fetched. Advanced data and analytics can offer insight into a customer’s needs and preferences. In addition, Accenture research found that:
- 77 percent of insurance customers would provide personal information in exchange for lower premiums or better service.
- 63 percent of customers would provide mileage data to their auto insurer.
- 52 percent of customers allow their insurer to monitor their driving patterns.
Most insurers would benefit from having a dedicated claims analytics organization, as well as a centralized portal system for customers to view their claims status, monitor follow-up actions, and enter or update data as needed. The ultimate goal, of course, is to create a 360-degree view of the customer—to better understand his or her needs, and to address those needs proactively.
In addition, the growing Internet of Things offers insurers the ability to capture more data. Connected cars, homes and businesses will become a pervasive data source. They can not only support risk assessment and underwriting, but can also enable finer segmentation, more personalized customer service and timely risk management advice.
Speaking of risk management, join me next week as I explore how insurers can improve customer retention—by reducing the incidence of claims in the first place.