Recent study suggests that incorrect data can drive up insurance premiums…

Research conducted recently by Consumer Intelligence shows that 1 in 3 insurance customers put incorrect details into comparison sites when obtaining a quote for insurance. Why? To avoid follow-up marketing as a result of their contact details being provided at the point of quote.

Data and its availability is a common challenge for any industry and most individuals. Concerns over fraud, marketing communications and identity theft are some of the overarching triggers of concern. But, without realising this could be driving up the cost of their insurance policy – in fact 80% of policies with inaccurate data inputs were found to be higher than those which had a true input.

INSURANCE DATA

Without having accurate data embedded within your systems, filtering out non-factual or fraudulent inputs can be difficult. As an insurer if you don’t have all the data to accurately assess an application or quote then you could be missing out on various opportunities. 18% of people may not even pass the initial verification stages to even obtain a quote from you. If they do, the pricing of the policy is unlikely to reflect their actual circumstances meaning loyalty and retention could be much harder than necessary and the accuracy of your offer is hindered.

Data can be presented in multiple variables. Data enrichment can offer a single streamlined service at the point of quote. The benefits? Identify and protect against claims, defaults and cancelations whilst delivering accurate pricing to your customers. In addition using enriched data variables can help check the identity of a customer and manage the risk of fraud at the point of application – based on understanding an individual’s risk profile appropriately.

Understanding the individual customer desires and needs will also help you be more efficient and drive longer term relationships. Data can not only help you identify correct vs. incorrect data inputs but align your efforts to their individual needs. For example if a third of people obtaining comparative quotes are concerned over their details being abused by marketing messages, knowing who they are and more about them could set you ahead of those they fear. Enriched data can help you understand who wants what, by what channel and when. Inevitably tailoring a better delivered service using data effectively and appropriately.

Data isn’t just a set of variables. It is a consequence of multiple factors that make up the single attributes of an individual. You just need to know how, and when, to use it.