This is the second in a series of blogs discussing the benefits of contributory data to the insurance industry.
As I wrote in my last blog, when insurers join together as an industry to combine their respective databases into one massive pool of information, they get access to data they cannot get individually. So, how does this benefit the insurance carrier?
Just as consumers benefit from complete and accurate loss and policy information, so do carriers. Contributory databases enable carriers to achieve greater precision and risk segmentation. In turn, that can help carriers improve profitability, foster a healthier book of business and support long-term growth through:
- Enabling more sophisticated pricing: Carriers can offer the lowest rates to those with favorable loss and policy history, and higher rates to those with more active loss history.
- Improving operational efficiency: Carriers will have better access to a customer’s full loss history with just a few keystrokes.
- Innovating faster: Carriers can access a large amount of data and improve their analytics and product development initiatives.
- Augmenting fraud detection: Carriers can validate information at the point of quote, renewal and claim, and more quickly identify suspicious patterns.
- Becoming producers’ carrier of choice: Contributed data frees producers from time-consuming data entry and allows them to focus on their clients.
- Achieving a 360-degree customer view: Carriers have more holistic understanding of customers and their needs, enabling them to grow the relationship.
What it all comes down to is this: contributory data can help carriers strengthen the customer relationship by providing a more relevant, personalized customer experience—not unlike the historical customer-carrier relationship, when both parties worked and lived within the same small community.
In the next blog in this series, I will cover how contributory databases can benefit consumers. For more about contributory databases, download our new white paper, Contributory databases can unlock value for insurers.