There’s lots of talk in the broker community about the value of data, getting the best insights, pricing risk better in a time of inflation. That’s all sensible but what tech tools can help do that every working day?
IE caught up with Dan Cicchetti, (right) snr director client engagement, U.K. and Ireland, for LexisNexis Risk Solutions and Sandy Keith (left) from Apricot Insurance to find out how data analytics really makes a difference.
IE; Here we are at BIBA 2023, data is a key topic and there are sessions on the new Consumer Duty rules too. How has the LexisNexis Risk Solutions Broker Intelligence data enrichment solutionhelped Apricot customise insights and perhaps personalise the product lines for the customer too?
SK; So the biggest benefit for us at Apricot was probably the data enrichment side of it, which saved us the laborious processes of chasing customers for up to 30 days before renewal dates. From a broker perspective it’s also improved the customer journey, our own productivity, plus the insurer angle as it gives us a better choice on quotes.
IE; In the olden days one problem many brokers faced was the proof of NCD, which used to be a piece of paper, but even chasing the electronic format can be time-consuming can’t it? How does the data enrichment offered through Broker Intelligence solve that problem?
SK; Well you would have increased cancellation rates, some customers couldn’t get the documentation in time either. So all that causes disruption to your systems. With Broker Intelligence that discomfort is taken away, it automates that proof of NCD at the point of quote so there’s no chasing up.
IE; As a broker, you have tons of raw data, but what truly rich insights have you gained, what’s been the useful nugget of data Apricot has gained recently?
SK; Our profitability has improved largely because our cancellation rates have fallen quite dramatically, from about 40% down to 18-20%, big difference. The saving on cancellations means that Apricot can invest in new products, plus price optimisation. The big benefit is using data to match the right policy to the customer’s needs, which reduces that cancellation ratio.
IE; Dan,are you finding at LexisNexis Risk Solutions that brokers are finding very trackable, concrete gains from using the Broker Intelligence data enrichment solution?
DC; Absolutely. It used to be that very much about how insurers partnered with their brokers, but it’s now the case that brokers realise how much they can benefit, in a variety of ways. It can be improving the customer journey, automating NCD, just taking control in general really.
Then you’ve got the risk benefits too, which is becoming more important in terms of compliance as the Consumer Duty affects the market. So it isn’t just the broker risk, it’s the question of how much risk the consumer is taking on too. Broker Intelligence isn’t just about automating tasks, it’s about enabling brokers to verify who their customers are, are they being sold the right products for their needs and identifying any vulnerable customers too.
IE; Knowing the customer’s history at the point of quote is crucial isn’t it?
DC; Completely. You only get one chance to understand as much as possible about the consumer, whether it’s your own website or a price comparison site – one chance only. If you haven’t got the right info, then there’s a risk that your quote isn’t going to be competitive and you’ll probably not get a second chance as the customer continues to search online.
RICHER DATA, MORE OPPORTUNITIES
IE; Sandy, is Apricot finding that longer term insights are inside the data and how can you best extract them?
SK; So we have just started collating other rating scores ourselves, going beyond our usual question set. We are collecting it within our own data warehouse. That will allow us to be more scientific in our retail pricing. At present we are seeing better profiles on our customer base, plus lower cancellation rates.
Our partners are also happy that we have made this investment in understanding more from our database. Things like adding credit checks, NCD, 4-point ID checks and we are working on the next phase which will allow us to understand more about the cancellation data we already have. Exciting times for Apricot.
IE; We are moving into an era of digital ID across the UK and EU and so getting a motor quote is going to go beyond just adding your driving licence number isn’t it?
SK; It is and generally with the cost of living crisis right now we are all going to see more cases of potential fraud, so extra ID checking eliminates that risk for us as a business.
IE; So an enhanced customer ID also gives you the long term opportunity to cross-sell as you know that bit about the customer?
SK; Absolutely. We have invested in that data enrichment strategy and created a new customer contact centre system. This means we have a chance to connect with the customer over a 12 month life cycle of the policy, because there could be other services we can offer.
IE; Are LexisNexis Risk Solutions now finding that a customisable dashboard is something that your customers are asking for as a standard feature?
DC; Think it depends. For some brokers enrichment of the data has been a bigger, maybe more expensive project. But Broker Intelligence is something designed to be something for everyone and provide the essential elements. It works for brokers and consumers alike.
IE; Are brokers now using maybe 3 or 4 pieces of crucial customer data and joining them up, sort of like the four corners of a jigsaw, it gives a structure a framework?
DC; It’s probably been said before that it isn’t about the datasets, but how you use them. If everyone is using the same datasets then you’ll get the same answers, so there has to be variation for each business. Every company can look into grey areas where their rivals aren’t perhaps doing that well, so you can use the data to see if you can provide a better offer.
IE; There are those multiple factors now, beyond postcodes; valuations, jobs, persons in the household, claims risk, NCD etc.
DC; Yes, you do need a more in-depth view of both the vehicle/property and the individual too.
SK; If you look at the enhanced views you can get on named drivers now, then you see the advantages of richer data. It isn’t just assessing fraud risk, it’s also about cross-selling or upselling. Getting a view of who is in that household, who is in proximity to the policyholder, is something that adds value.
DC; It goes way beyond the old named driver risk profile. Tracking things like MTAs, driver history, claims history and so on – all those touchpoints really make a difference and offer a more complete experience for broker and policyholder. LexisNexis Risk Solutions is delivering a product that is both affordable and customisable too and we believe that’s what the UK broker market needs.
IE; Interesting insights, thanks for your time.
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