Are You Maximizing Your Data?
Big data is ever-growing and always changing, and the data used in the insurance industry is no exception. To stay ahead of the competition, companies in this industry need to find ways to unlock meaningful insights from the data that they are collecting. This work starts with building a strong foundation for data analytics.
By bringing all the data that matters into a unified, organized, and accurate source of truth, companies can begin to make sense of it all with analytics. However, some firms lack the in-house expertise needed to implement these changes successfully. Hence, outsourcing the analysis of your information may be the right solution.
With the right guidance, you can get your organization where it needs to be. After all, data analytics will only become more important in the years to come.
How Data Drives Business Decisions
Good data collection practices allow companies to identify trends, spot opportunities, and understand their customers better. With this information, companies can make sound decisions to help them grow and succeed. There are a few different ways that businesses can collect data:
- They can purchase it from third-party providers
- They can gather it themselves through surveys and customer interactions
- They can generate it internally through website analytics and sales records
The important thing is that the data is accurate and actionable no matter where it comes from. Once a business has collected its data, the data needs to be organized in a way that makes it easy to use. This deciphering stage is where data analytics comes in.
Data analytics is the process of converting data into meaningful insights. There are many different types of analytics that can be done, but some common examples include customer segmentation, predictive modeling, and text mining.
Leveraging Data Analytics for Insurance Agencies
There are many ways modern data analysis can help insurance agencies grow and improve. A few of them include:
Identifying Risks and Growing Accounts
By analyzing data, agents can identify potential risks to a policyholder, enabling them to implement the appropriate risk management procedures to protect their client or provide additional coverage options.
Assessing Operational and Employee Performance
Modern data analytics can be used to improve operational efficiency by providing insight into the agency’s performance. For example, agencies can monitor the amount of time their staff spend on certain tasks like policy processing and determine whether employees require additional support or training.
Maximizing Contingent Revenue
Carrier contingent commissions are a significant source of agency revenue. Analytics can help agencies calculate the monthly and contract year-to-date supplemental income they have generated, as well as what income they can still achieve before the end of the contract term.
Data analytics and insurance are a natural fit. The insurance niche has always been data-driven, and the advent of big data and advanced analytics has only made things more exciting. That being said, analysis is only one piece of the puzzle. Businesses need to combine data with analysis and expertise to make the most informed decisions possible.
Data Analytics and Insurance Outsourcing Solutions
Agencies face plenty of challenges in making full use of their data. To be successful, organizations first must identify the metrics to track that will help them to meet their specific priorities. Next, they must gather and organize the data to reveal trends. Finally, these trends need to be analyzed so that the company can create a plan with actionable steps to improve core metrics and business processes. While each step is vital, agencies may not have the time, tools, or desire to do things on their own. As a result, many are turning to outsourcing solutions to help them meet their big data needs.
There are many benefits to outsourcing data analytics for risk and insurance, including:
- Detailed analysis with actionable insight you can use to improve your processes
- Fewer staff hours used to monitor data and trends
- Greater insight into best practices for data analysis
- Better information about the risks facing your business
Data analytics is a powerful tool that can help your agency gain a competitive advantage. If you need help getting the most out of the data you’re already producing, ReSource Pro’s insurance data and analytics outsourcing solutions can help:
- Policy Insights 2.0: Featuring tools to streamline policy processing while mitigating E&O risk and enhancing revenue streams
- Carrier Insights: Incredible tools to review, track, and manage carrier incentives
Want to know more? Schedule a meeting with us.