Customer-Centric Insurance: The Value of Big Data
Customers are demanding more and more from their insurance companies – from online access to their policies, to tailor-made packages, to real-time updates from their insurers. With customers also becoming less brand-loyal when it comes to insurance, insurers must take a customer-centric approach in order to attract and retain business.
The fundamental factor in achieving customer-centricity and realising the benefits that the approach brings, is creating core systems that are capable of gathering, archiving and analysing data. For many insurers, burdened as they are by legacy technologies, this is not currently possible. Instead, IT departments are supporting core systems that were never designed to handle vast contemporary data volumes or modern analytics solutions. Ultimately, this means that data is not available to be utilised in the underwriting decision-making process, for new product and service development, or to improve customer service processes.
The benefits of transforming the IT infrastructure to one that is capable of handling large and ever-growing data sets are many. By consolidating data to achieve a single view of the customer, sales and marketing activity can be better targeted and tailored, improving the success of campaigns. Product and service suggestions can be made based on the demographics, behavioural and historical data of customers – increasing new business sales and profitability. Taken together, these factors will hugely improve service to customers, delivering a personalised approach that gives customers the products they want.
To become a modern insurance company, CIOs and IT departments must ensure that they are providing a solid foundation that will underpin the more intelligent use of analytics and data. First, they need to be certain that robust systems are in place that are able to pull data from multiple sources, and that ease of access to data is facilitated. This is not only important from the perspective of sales and customer services, but also in making data easily retrievable and reported in order to meet regulatory frameworks.
To deliver a true customer-centric business, where your customers’ needs and expectations are met how and when they want it, then your IT systems need to up to it. Or the competition will leave you playing catch up.
Read more about the future of insurance and what your organisation can do to modernise, download Trustmarques white paper today.