Merger and acquisition activity, high levels of switching and separated database infrastructures have made customer data management one of the insurance market’s biggest challenges.
At the same time, the FCA has issued its final report containing proposed remedies to address the need for insurance firms to provide fair value to their customers and greater pricing transparency to the FCA. Responding to these challenges, at LexisNexis Risk Solutions we’re now in a position to help insurance providers create a cohesive single-customer view across underwriting, pricing, renewals and claims.
LexID® is the unique identifier built from proprietary linking technology and vast data resources including insurance specific data to match disparate identity information.
A study by the Managing General Agents Association found only 30% of MGAs use their data for cross-selling. The LexID for Insurance service finds common threads across customer records pulling on a wide range of data sets, comprising circa 2.3 billion records including public and insurance policy history data, to help build the picture of the individual to support all parts of the insurance continuum.
Linking disparate customer records
Every opportunity to leverage data in the CRM comes with its own challenges. Today in the connected world, more than ever, insurance providers are facing the risks of regulatory change and a disconnected customer experience. According to the Connected Consumer Report 55% of UK consumers believe insurance companies provide a disconnected experience across online and offline channels. Another 63% of consumers said they would change their insurance provider if insurers do not address this issue.
It’s a customer experience challenge which has traditionally been difficult to overcome for insurance, as it is disintermediated by layers of software houses, brokers, insurtechs and online aggregators. Customer-centricity is front of mind for the industry, but now there is a way to create the connecting data layers.
Disparate records can be linked into a common LexID identifier using LexisNexis® Scalable Automated Linking Technology (SALT), a patented method of linking and clustering data. By pulling together data from multiple touchpoints – quote, renewal, claims and marketing – insurance providers can build a comprehensive and accurate representation of their customer.
Data stored in multiple silos as a result of legacy systems or merger and acquisition activity risks becoming outdated, incorrect and inconsistent. Individuals may appear in multiple disparate customer databases within the same insurance group. This can lead to wasted marketing budgets, customer service inefficiencies, inaccurate pricing and wasted data storage costs.
At the same time, the market is under pressure to support customers impacted by the pandemic and needs to prepare for the proposed new pricing regulations. This starts with ensuring you have a complete, single view of your customer’s history across all products and all touchpoints.
Insights into a customer’s wider needs
An insurance provider that knows the details of a customer’s wider insurance requirements, renewal dates and up-to-date contact information is much more likely to be able to carry out effective communication at all stages of the customer journey, and in turn, cross-sell relevant products at the right time. This can be achieved with a consistent methodology for standardisation and matching of customer data across multiple databases.
A proven ID matching solution, LexID® has been the bedrock of LexisNexis Risk Solutions products and services for over a decade. Now, it is available to help bring sense and order to insurance provider-held customer databases.
Follow the link to the LexisNexis Risk Solutions website to find out more about how we support insurers.
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