Driving a data powered future – transformation within the insurance industry
by Maggie Game, Strategic Client Director, Experian
It’s a time of change for the insurance industry. The explosion of consumer data, advancement of technology and increased focus on digital bring both challenges and opportunities for organisations.
So what developments are shaping the insurance industry, and how are businesses adapting? What innovations can we look forward to, and how can we best concentrate efforts to maximise success?
The growth of open data and data sharing is the first factor to acknowledge. The banking industry is currently going through the Competition and Markets Authority’s retail banking review, meaning organisations will need to allow access to current account transactions information by the first quarter of next year.
While this will be depend on customer consent, those who agree to share their information will benefit from greater transparency and increased access to innovative new products and services. This as a blueprint for other industries, including insurance. Similarly, increasing the control given to the consumer is something organisations across all sectors will have to adjust to.
Closely linked to this is the fact that we have access to more information than we ever have before. Legislation around data sharing, plus new data sources such as social media, connected cars and wearables, will bring exciting possibilities. The Internet of Things will allow organisations to collect permission-based, real-time data about how, when, and where consumers use their products.
Connecting data sources
Achieving a single view of the customer, with all their data in one place, is the ultimate goal for 97% of organisations. For insurers, having a comprehensive picture of customers’ accounts and activities is especially valuable.
Experian has invested in technology to make this possible. Organisations are empowered to link data across over 2 billion data records and create a single unified view by assigning a unique pin to almost every UK consumer.
Honing in on analysis and insight
Data is only valuable when it’s used to source insights which can help inform business decisions. The more information available to process, the more analytics will be used. There’s a real need for more advanced decision-making capabilities, such as automated systems that inform decision-making in real time. This is now being linked with optimisation which enable decisions to be made in less than 30 milliseconds, allowing the ultimate in next-best-action marketing.
Keeping the customer at the core
In rethinking and updating strategies, organisations need to innovate, but they need to take guidance from what their customers want. As technology continues to influence attitudes and expectations, insurers have to deliver the fast, frictionless and personalised journey their customers demand. Data and analytics can pave the way.
New technologies open up exciting – potentially revolutionary – possibilities. By 2020, 90% of cars will be connected. How can this new means of data collection enhance products and services? Machine learning, the Internet of Things, wearables, connected homes: all add to the complexity, but all can make significant improvements to the way businesses interact with customers. Transformative times are upon us and there’s a lot to look forward to.
Dynamic customer journeys are another notable development. Many insurance companies are now looking to digitise their processes across the whole value chain. As well as helping acquisition, this gives a better understanding of customers, telling them who’s more likely to convert as well as who represents a risk. It can also link to call-centre capabilities, allowing teams to choose how to best allocate their resources.
As the industry continues to evolve, so do the solutions within it. The focus now is on partnering with insurers to understand every consideration and make the most of every opportunity.
In this changing landscape, insurance providers need to find ways to adapt their strategies and focus on new opportunities for growth. A collaborative approach will help the industry unlock the power of data to drive acquisitions and growth, improve efficiency, combat fraud and to build stronger customer relationships.