The competitive analysis landscape has experienced tremendous growth and change over the last decade. Carriers now have more access than ever before to data and advanced analytics that enable them to see the whole picture and shift from one-dimensional to high-definition competitive analyses. Many insurance carriers, however, have not taken advantage of these technological developments to transform their businesses and improve their position in the marketplace.
In our newly released white paper, LexisNexis® InsurQuote® in Action, LexisNexis presents a case study using compiled and anonymized real data to represent MyCompany, a fictional auto and home carrier experiencing challenges with loss ratios.
Applying both one-dimensional and high-definition techniques, LexisNexis demonstrates how high-definition competitive analysis provides a deeper understanding of MyCompany’s true business problem: it was seeing only a partial picture of the market, and so missed critical insights when evaluating its competitive position.
One-dimensional analysis = one-dimensional results
It’s no secret that pricing is a top concern when it comes to a customer making a decision to purchase insurance. But if you as an insurer rely on competitive intelligence based on limited datasets and an analog analysis, you leave yourself vulnerable to attrition – and lost premiums, risky investments, and missed business opportunities. In MyCompany’s case, a one-dimensional analysis only revealed that its rate levels were out of sync with the market.
By applying a high-definition analysis, however, MyCompany was able to leverage innovative tools from LexisNexis to draw from a deeper dataset, revealing obstacles beyond rate levels that were affecting its market position.
High-definition analysis for your business
While the MyCompany case study is a fictitious representation of amalgamated data, it has real-world implications for the insurance market. By employing a high-definition data analysis to your unique situation, you can bolster your own book of business.
And don’t worry about the time constraints to applying a high-definition analysis. In the case study, both analyses took approximately the same amount of time to complete, indicating that you can obtain more detailed and accurate insights for your business without forgoing a quick turnaround.
Click here to read the full white paper.