(NU Property Casualty 360) - What if you could see into the future and know your clients’ insurance needs even before they do? You could offer flood insurance quotes before customers even realize they are in a flood zone. You could be ready to provide updated auto insurance coverage when kids turn 16, even before clients ask you to add another driver.
You have a clear look at the future because you’re not relying on crystal balls but on math to predict coverages and identify trends. With data analytics, agents can use the information in their systems and third-party databases to identify gaps in coverage and pinpoint new opportunities within their book of business. And agents should take advantage. Knowing clients’ needs and providing comprehensive coverage shows the client that the agent has their back. Ultimately it creates customer loyalty.
Agents want to stay on top of their clients’ needs — and in a universe where there were infinite hours in a day, they would personally check in with each client every quarter. But in reality, they don’t have the bandwidth to do manual follow-ups. Workloads are large. Agents can’t check in with each client even twice a year to see if there are any changes to their situations. That’s where data analytics can help. Agents can uncover these opportunities without manually touching every account.
Don’t let tech-forward terms like AI-powered analysis or predictive analytics scare you away from using these tools in your agency. Data analysis has become quite easy and simple for agents to use. Many agency management systems (AMS) will run reports analyzing the data within your system. Insurtechs specializing in data analysis have created platforms that are complex underneath but enable agents to easily see cross-sell opportunities. For example, an auto insurance client might own multiple homes that currently aren’t being insured through the agency.
Consider these three ways you can use data analytics to stay on top of your customers’ changing needs and identify new opportunities.
1. Get the whole picture by utilizing third-party data
The agency management system is the master client data center for independent agents. But it is only filled with the information you know. Imagine a detective trying to solve a robbery by only talking to the bank manager and ignoring accounts from other witnesses. He could be missing vital clues to help him solve the case. Same with insurance. Customers might not be aware a certain change impacts their policy or that they lack a certain coverage. Third-party data can fill in the gaps.
Some data analytics platforms not only utilize information from the agent’s own systems but also marry it with outside information giving the agent a more complete view. For example, platforms can analyze public records and alert you if a current policy won’t cover all risks associated with a client, such as additional properties or changing life events.
2. Stay ahead of renewals
Renewals are a great reminder for agents to check in with their customers. You don’t want to miss this opportunity to show your client you’re on top of their needs by accidentally missing the date. But have no fear; data analysis is to the rescue. It can easily identify any renewals within a certain timeframe. For example, you can run a report to determine who will need to renew in 60 days. Then if you have email automation that enables personalization, you can send everyone a reminder with one email draft and a few clicks.
Data analytics platforms can also alert you if there will be a significant change when it comes time for renewal, such as a large premium increase without much change to the client’s circumstances. Armed with this information, you can prepare additional quotes in anticipation that the client might want to review options with other carriers.
3. Turn predictions into actions
A pumpkin only helps Cinderella if it gets turned into a carriage, and an opportunity only helps an agent if it becomes a policy. It’s not only about knowing what a policyholder might need but also excelling at how to sell. Analysis might uncover dozens of potential opportunities, but utilizing analog processes like phone calls and individual emails will be too slow to turn all of those opportunities into wins.
Creating automated marketing campaigns can make it fast and easy to take action on potential opportunities. Some data analytics platforms will even automatically generate a quote when it uncovers an opportunity to be included in the outreach to the client. For example, your data analytics solution identified 40 customers that resided in flood zones but lacked flood insurance. An automated marketing platform enables you to create one email campaign alerting the customer to their lack of coverage and giving them some basic information on the policy. Basically, you get to reach 40 potential customers for the price of one. These platforms also enable you to customize the email with the client’s personal information, so it doesn’t appear as mass communication.
Getting them the information is step one; making it fast and easy for them to purchase the policy is step two. Look for carrier partnerships that embrace a fast and simple purchasing experience. Many newer digital carriers allow their agents to provide a seamless buying experience for their clients. For example, clients can review policies on their mobile devices and purchase them with a single click. It’s a fact that people hate paperwork, and if you can reduce it for your clients, you will not only win their business but also become one of their favorite people.
You can’t take customers for granted. You need to stay on top of their needs, so they know you have their backs. By using data analytics, you can make sure your customers have the right coverage to meet their needs and grow your business.
By Luis Pino
September 23, 2021
Luis Pino (luis@agentero.com) is founder and CEO of Agentero, a digital insurance network. Before starting Agentero, he was a member of the founding team for CoverWallet, the small business insurance platform that was acquired by Aon
