Insurance is all about making smart decisions based on risk intelligence. That might be intelligence already held within the four walls of the insurance provider, or combined with other public and private datasets.
We know first-hand that the more data-led insights you have, the more accurate the risk assessment and the subsequent pricing decision about the risk. But it’s also true that the more data providers you have to call out for, the slower the process becomes.
No-one can afford to be slow when handling insurance claims in the modern insurance space, especially in the post-COVID 19 world where digital expectations are changing. The Capgemini World Insurance Report polled insurance consumers just before the Coronavirus outbreak and it found that customers were already hungry for change in the insurance experience, becoming more receptive to on-demand products and automated processes. Hyper-personalisation is key and it is the data platforms of the future that are going to deliver this intimate customer experience.
The Capgemini report found that acceptance towards buying insurance from one of the big tech giants like Google or Amazon is accelerating fast: while only 17% of 2016 survey respondents said they would consider purchasing insurance from a ‘big tech’, the number has doubled by 2020 to 36%.
A slow experience – asking consumers to fill out a form, for data the insurer should have within its four walls – doesn’t create a great first impression on the customer, instead it leaves the door open for more agile competitors. Ultimately it is not an efficient way of working and it adds to cost as well as friction for the consumer.
This need for agility is particularly relevant in commercial and residential property where data enrichment in claims and underwriting has not yet reached the levels seen in UK motor insurance.
It’s the reason we’re working towards bringing a household contributory claims database to market, where – in conjunction with other data enrichment factors – insurance providers can gain a complete view of the property, the neighbourhood in which it sits, the perils such as flood and fire, the people in the property and the history of past claims related to that property.
Automating the property insurance market, and bringing richer claims data into processes, comes with certain challenges due to the wide range of data the sector needs to understand and assess the risks fully.
More data through the platform and widening the ‘risk radar’
In particular, there has been a need to more fully integrate perils data given the impact of extreme weather events on insurers’ books. Whether the asset to be insured is in the home setting, a residential landlord, SME, or commercial space, insurance providers need to be looking more toward a multi-faceted, 360-degree view of each risk.
But this is an issue that’s now being conquered with perils data available as a rating factor, alongside public credit, identity verification, property and business data from a single access point. No call outs to multiple data providers needed.
In fact the capability exists to deliver high volume, real-time risk data to help inform pricing and underwriting decisions, direct into the quoting systems used by the sector. This means insurance providers can gain the clearest picture possible of property risk for right-first-time new business quotes, renewals and mid-term adjustments through one single point of entry.
By using one door onto the widest array of rating factors currently available, insurance providers can see greater efficiencies, faster and better decision making, and an improved customer experience.
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