5 minutes reading

Adapt Processes to Serve Customer Demand Based on Data Metrics

July 24, 2021

Property and Casualty (P&C) insurers stand in the valleys between mountains of challenges. According to McKinsey, auto insurers have lost an average of $4.2 billion each year on underwriting profits over the past half-decade¹. Between increasing competitive pressures, unparalleled levels of uncertainty and change, and sweeping digitization, building financial resilience, growth, and innovation isn’t easy. In fact, KMPG surveys suggest 25% of every premium dollar is immediately consumed by baseline operating expenses². And, despite 94% of insurers desperately working to rectify this issue, over half are behind schedule and in a rut.

For many, customer data is the ace in the sleeve. Connecting front and back offices with robust data reporting and dashboards unlock new opportunities for growth and agility. From direct-to-consumer sales to better underwriting and customer-centric practices, data metrics give your teams the ability to patch gaps between digital excellence and customer satisfaction. So, where do you start? How do you leverage customer data to make a tangible impact on your operation processes? And why should you bother?

Here’s everything you need to know about data, reporting, and dashboards in the wonderful world of P&C insurance.

The Power of Customer Data Reporting and Dashboards in Insurance

KMPG data is clear: insurers are in a race to digitize. 80% of C-level insurers admit COVID-19 “turbo-charged” their need for next-gen operating models³. For those with the technologies and capabilities to collect and tap into troves of customer data, the path forward is clear. Customer data analytics combined with savvy dashboards give insurers the fuel they need to create these next-gen models.

Here are a few (of many) ways customer data reporting and dashboards can transform your company.

Agent Performance Analysis

The P&C insurance industry as a whole is in the red. The difference between successful firms and laggards often boils down to two words: agent productivity. According to McKinsey, data and automation can boost P&C carrier labor productivity by 14-24%⁴. Of course, there’s productivity gained by automating underwriting, better targeting customers, and eliminating redundant activities. But simply tracking and analyzing agent performance at scale works wonders.

Data-driven dashboards and real-time data feeds give you insights into agent productivity across multiple metrics. When you see friction points, you can start to tackle the exact processes causing those slowdowns.

Cost-effective & Customer-centric Underwriting

If you aren’t offering must-have features like digital purchasing and digital plan matching, you’re behind the curve. Customer data can be leveraged to provide instant policy matching, automated underwriting, and customer-centric digital solutions. McKinsey notes one European insurer who improved business by more than 5% simply by using customer data and digital-first policy purchases⁵.

Fraud Detection & Prevention

Non-health-based insurance fraud costs $40 billion each year⁶. Digitization can significantly cut into this fraud. For example, customer data can be leveraged to ensure the accuracy of identity and claims. Using digital policy matching tools keeps customer data contained within one digital ecosystem, and digital-first practices allow you to adopt two-factor authentication and aggressive data security policies. Compared to traditional practices that rely on paper-based processes, data-driven ops vastly decrease fraud-based activities.

Rate Modification via Geographic Analysis

Geographic risk analysis is a key component of running a successful P&C operation. Different areas and neighborhoods have vastly different risk factors. By analyzing clusters of customer data, you can key in on risk trends — allowing you to create smarter and more cost-effective policies for all parties. Custom-built tech can help you analyze historical trends while real-time customer data can inform those trends over time.

Friction-free Claims Management

The power of data in the claims journey is hard to overstate. With robust data collections and hyper-informative dashboards you can:

  • Track long-tail claims to better understand loss reserves at scale
  • Better assign claims to the appropriate sources based on complexity and scale
  • Use RPA to handle repetitive data entry tasks associated with claims management
  • Semi-automate the claims journey
  • Get insights into claims management cost structures
  • Track customer satisfaction across the claims journey and more!

The more data, technology, and digital aptitude you apply to the claims management process, the more value you’ll find.

Data Metrics + P&C: A Perfect Match

Scoring wins in today’s hyper-competitive, digitally-soaked insurance ecosystem isn’t always easy. Cutting costs, improving operational efficiency, and bolstering productivity require investments in analytics, technology, and data reporting, and dashboards. To learn more about how your P&C can transform using the power of data, contact us.

 

Sources

  1. https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/time%20for%20insurance%20companies%20to%20face%20digital%20reality/digital-disruption-in-insurance.ashx
  2. https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/03/operational-excellence-report-2019.pdf
  3. https://home.kpmg/xx/en/home/insights/2020/11/the-covid-19-catalyst-insurers-race-to-digitize.html
  4. https://www.mckinsey.com/industries/financial-services/our-insights/the-productivity-imperative-in-insurance
  5. https://www.mckinsey.com/industries/financial-services/our-insights/restore-and-reimagine-digital-and-analytics-imperatives-for-insurers
  6. https://www.fbi.gov/stats-services/publications/insurance-fraud#:~:text=The%20total%20cost%20of%20insurance,the%20form%20of%20increased%20premiums.&text=Premium%20diversion%20is%20the%20embezzlement%20of%20insurance%20premiums.

 

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OZ is a consulting and technology solutions leader focused on increasing customer engagement & operational excellence by leveraging Intelligent Automation.