IE was at the 2022 BIBA Conference to check out the latest products, new ideas and the incredibly positive buzz in Manchester Central for two days.
One of key tools every broker needs is accurate, insightful data. Not just stacks of random information, but something that’s interlinked, actionable and makes sense when it comes to pricing risk or renewals. So we caught up with Martyn Mathews, senior director of personal and commercial lines at LexisNexis Risk Solutions Insurance U.K. and Ireland, to find out more.
IE; What’s the mood at BIBA been like so far?
MM: Great feeling of collaboration overall, people are now much more willing to share data and insights to create better products. We’ve felt the spirit on the stand and had some great conversations. For us, it’s been the feeling of community which has been the most powerful factor at the event.
IE; What trends have emerged from talking to brokers here in Manchester?
MM; You realise that we are custodians of data and people want us to build systems that make that data work. Not just for the broker, but for the end user, the policyholder too. Expectations have changed during the pandemic and that means everyone online just expects things to work smoothly, no problems. Consumers demand that online service now, even from small brokers, so we are all playing a part in making it work.
IE; How useful is that 360 degree viewpoint now that almost everyone is online, using various apps etc. 24/7?
MM; A full view of the customer is essential now, that’s the feedback we are getting from the floor of the show here. The reasons go way beyond risk and pricing too, it’s also about creating a personalised service as a broker. I like to say that LexisNexis data lets you join the dots before you quote, which is why Quote Intelligence is so valuable as a tool; seeing the bigger picture as regards data means you can up-sell, cross-sell and more.
IE; The pandemic has reduced weekly car commuting quite a bit, plus we have various ULEZ/Congestion zones coming into play in the next few years. Do you see a demand for data that will underpin new mobility solutions?
MM; There’s always going to be demand for car ownership to an extent. But yes, some people living in cities will gradually switch to using various mobility services. I think we are a long way off that tipping point if you like, but there’s no doubt that customer data is going to be crucial in pricing cover for occasional car usage. In the end, scale is the key. Once you have on-demand mobility at scale, then you have to scale up the data solution.
IE; What trends are emerging in data right now?
MM; Growing products at scale is definitely one of them. Another is finding value in the customer data to develop long term relationships, which is especially important after the FCA rule changes on loyalty discounts.
What we are also finding is that by joining up our Quote Manipulation tool to other blocks of data, brokers can gain deeper insights into customer behaviours. So you start with say how many times someone has cancelled within 30 days, then you overlay that with other key factors like postcodes, adding/deleting named drivers and so on. Suddenly you have a richer data profile to look at, you’re not just pricing on postcodes.
In the end, the FCA ruling is going to be a good thing as we can start pricing on personal risk factors, not postcodes or occupations. The way to give discounts for loyalty is to truly understand more about the consumer’s lifestyle, car and home use etc. Ultimately, everyone wants to sell the appropriate level of cover and that means connected data.
IE; Interesting stuff, thank you.
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