This is the third in a series of blogs discussing the benefits of contributory data to the insurance industry.
In the previous blogs in this series, I wrote about contributory databases and how their use can benefit insurance carriers through having complete and accurate loss and policy information. This same shared information can also benefit the consumer.
For most consumers, insurers’ use of contributory data results in lower rates. Without the benefit of contributory data, overall rate levels would be higher as those with better loss experience would subsidize those with worse experience. By providing carriers with insights into an applicant’s previous coverage and loss history, contributory databases enable more accurate rating and, for many consumers, lower rates—not just with their current carrier but also with others, should they choose to shop around.
Contributed data also augments prefill solutions, help reduce data entry and improve accuracy by minimizing keystroke errors. The fewer errors, the better the streamlined, digital-friendly experience that many customers expect in today’s connected world. Contributory databases also provide much-needed transparency and help mitigate fraud, an expense that is ultimately passed on to customers in the form of higher rates.
In the next blog in this series, I will cover how contributory databases can benefit the insurance market. For more about contributory databases, download our new white paper, Contributory databases can unlock value for insurers.