This is the final of a series of four articles about the state ofdata in the insurance industry. Previously, we focused on thecurrent state of insurance, customer demands and business models. While these topics arecritical, to evolve the insurance industry, companies must alsolook at how they are using data for the betterment of theindustry.
Insurance companies have significantly more data than somethink. But the industry has been unwilling or unable to use thedata to its fullest extent. However, by ignoring this data,companies are missing opportunities to better service customers andto improve business.
Acquiring data
Take a customer looking for home insurance. By simply entering apostal code and home address, this person can receive an instantquote online about the cost of the insurance. Now, from aninsurer's point of view, there is a ton of data that can be used tohelp this person: You can find internal and external data aboutweather risk, claims, construction, zoning, crime, accidents , andmuch other information.
These data points can provide patterns that can be used to helpthe customer get the right coverage while also protecting theinsurance company from underwriting risk and fraud. The insurer canquickly marry this with the customer's quote request to provide avery personalized quote. For example, instead of simply stating howmuch standard, minimum insurance would cost, your website couldprovide very tailored quotes.
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