Using data to inform insurance decisions is an idea as old as insurance itself, but these days, “data” means so much more, and its impact can be felt not just by actuaries and underwriters, but also by agents, marketers, tech leads, and even customers.
This month’s newsletter is all about data services — a crucial piece of the modernization puzzle that can help carriers realize incredible efficiencies across both internal and customer-facing processes.
The value of Data Services in the life insurance space
In the life insurance space, it’s easy to pigeonhole the idea of data as purely an actuarial or underwriting tool, but modern data services have the potential to streamline and optimize carrier processes across the entire value chain.
Today, I want to talk about about some of the ways that data is already powering carrier transformation and growth.
Knowing is selling
It’s widely understood that the more you know about your customers and their needs, the easier it will be to sell to them. In the past, however, what you knew about your customers was limited to a few disparate data points which were often not collected and pieced together until after a sale. In today's highly online world, it’s possible (and even encouraged) to know every detail of customer journeys, behaviors, and desires throughout the entire customer lifecycle. Knowing these granular data points allows for pinpoint accuracy in selling to the right customers at the right time.
The full funnel picture
Speaking of the funnel, smart data practices have been a boon for funnel performance and economics. That’s because every customer action can be attributed and quantified into actualized cost and potential revenue. Put plainly, funnel insights can help optimize your marketing spend and underwriting costs to maximize revenue, while modern encryption methods help secure data privacy. Additionally, customers also benefit from being placed in the most optimal product and having a better end-to-end purchasing experience. These aren’t just theories. We’ve executed these strategies in-market and seen real results, for example, lower per-application underwriting costs and higher policy placement rates.
The power of predictive models
Data points alone don’t always provide actionable insights. It’s the combining of data sources, including both first and third-party data, which then begins to build a richer understanding of your customers. When data richness is combined with the power of predictive modeling, organizations can not only optimize the existing inbound customer base, they can also unlock new audiences and revenue sources.
These are just a few ways that data services can help transform businesses from both ends of the sales funnel, adding efficiency while reducing costs and presenting growth opportunities.
If you’d like to learn more about Bestow’s carrier solutions, including data services, set up a chat with our team today.
Q & A with Eric Powell, Senior Director, Customer Engagement and Partnerships
Q: What is a product recommendation engine, and can it save my company money?
A: A product recommendation engine is one of the most practical and powerful uses of data in the life insurance space. In layman's terms, it’s a set of algorithms and digital processes that leverage data to help route the right customers to the right products.
Depending on your business needs, recommendations can be generated digitally as part of an online customer journey, or they can empower agents with top notch data tools to more efficiently and accurately place customers. Either way, that’s higher quality traffic being routed more quickly to products that better match customers’ needs, and for which they’re more likely to be approved.
This can reduce costs associated with both customer acquisition and underwriting, and could help increase revenue, particularly for carriers with a wide range of product offerings. Reducing declines can also improve customer experience and retention. It’s really a win-win.
Learn more about data solutions.
Missed last month's newsletter?
How tech makes carriers smarter: The same tools that make life easier for customers also empower carriers to optimize, grow revenue, and adapt quickly to changing markets. Everybody can win. Read more.