Big Data and How it Can Help Your Business
When it comes to growing your insurance business, it is no longer good enough to simply look within your own company's data to make decisions. In this day and age is it critical that your customer retention/insurance leads strategy also pulls in public data and social media data in order to get a broader picture of who your customers are and what services they need.
Today, big data comes from a number of sources, including call centers, direct customer conversations, emails, faxes, police reports and telematics devices. No matter what the source, obtaining and analyzing the information obtained is important, and it seems the industry as a whole has come to realize just how important.
A study last year revealed that 81 percent of North American insurers rate data strategies as a high priority or critical for the coming year. Here are 10 ways companies are leveraging data to interact with clients and converting insurance leads:
- Use data to close the loop between pricing risk and claims. In order to better price risk for new prospects, especially in the property casualty insurance business, underwriters will study loss and fraud statistics by analyzing data gathered from existing claims.
- Leverage external data for more accurate pricing. By analyzing real-time location, traffic and weather data, insurers can develop more appropriate pricing on property casualty insurance based on how and where the insured customers actually drive their cars.
- Combine customer channels. Combining direct customer connections, which include such things as agent interaction, call center communications, email, faxes, adjustor reports, etc., with indirect customer connections, such as social media and blogs, provides a more holistic or 360 degree view of each customer.
With this better understanding of how people like to be contacted and where they are spending their time, marketing officers are able to create a more personalized, unified communication response when interacting with their insurance leads.
- Optimize call center workload. By analyzing data that comes in from the call centers, insurers can determine what activity was performed by whom and how efficiently. This insight can be used to provide training guidelines for employees.
- Use of telematics data. One of the best new tools for analyzing risk in the insurance industry is the use of telematics. Several companies now offer customers discounts in exchange for allowing telematics devices to be installed in their vehicles to track such things as speed, location and braking. Being able to analyze driver behavior is a key component of predicting risk.
- Leverage cross-sell and up-sell potential. By analyzing text and speech in a near real-time environment using speech analytics, organizations are presented with new opportunities to cross-sell and up-sell.
- Improved customer service. By analyzing data and feedback gathered at call centers, insurers can improve the customer service experience. Often this analysis will help identify the employees who are doing the best job in their role, and single out those who need to be replaced.
- Detecting fraud. By analyzing when claims are made and by whom, insurers are able to identify whether an unusual number of claims is being made by the same company or individual, and if so, begin an investigation to determine if the claims are legitimate, or cases of fraud.
- Better use of social media to introduce new products and services. In order to attract new customers, you need to figure out where people are spending their time and advertise there. Numerous recent surveys have shown the number of people watching television is shrinking while the number of people spending time online is growing. Based on an analysis of big data, it may make sense to change your strategy and begin introducing new products and services online.
- Create comprehensive customer satisfaction surveys. Most insurance companies determine customer satisfaction rates by analyzing surveys filled out by a small number of customers who were willing to give feedback. Big data for insurance agents, however, makes it possible to deliver a survey to the entire customer base in a timely and cost-effective manner.