Though carriers have made a great deal of investment into direct channels over the past decade, the agency distribution channel remains the dominant interface between consumers and insurance carriers. That means that carriers that help independent agents to prosper can boost their own performance.
Analytics and data have a valuable role to play here, helping insurers to empower the agencies to become more effective sales and retention vehicles. Here are three ways for insurers to leverage analytics to drive a high-performing agency network:
Optimize compensation and performance management
A one-size -fits-all approach to compensation will not incentivize the same or the preferred behavior in all agencies. Acquisition, growth, and retention analytics can play a key role in extracting important insights for independent agencies. They should be used in tandem with deep agency and channel analytic insights to match the right products and services with the right agency performers.
Provide data and analytics capabilities to agents
Insurers should share their insights and data with their agent networks. Simple, relevant, personalized, data-backed recommendations can be delivered regularly to agencies through multiple channels. The level of insight provided can be more in-depth or bundled for top producers, and may include peer comparisons, risk-based-pricing trends, and early customer-churn warnings.
Leverage customer segmentation
For agents, a better understanding of the needs and preferences of customers in their markets is a critical component to meeting and exceeding customer expectations. Through more effective use of customer data and related information, carriers can help improve the way agents manage and prepare for each valuable prospect or customer interaction.
Augmenting agents’ local knowledge with a more detailed understanding of customers through advanced analytics allows agents to provide increasingly relevant, more compelling, and truly differentiated advice. Being able to adapt their market interactions, brand messages, and the customer experience to credible, real insights provides a much better way for independent agents to further differentiate themselves.
The agency network is just one area where visionary insurers have an opportunity to leverage data and analytics to transform their businesses for high performance. For further examples of how insurers are leveraging today’s advanced analytics and big-data tools to drive competitive advantage, visit our Analytics Journey to ROI for Insurers microsite.