It’s almost BIBA Conference time again, so here are some thoughts from Ashleigh Gwilliam, Director of Insurance Industry Growth, at FullCircl;
After four years of a hard commercial insurance market which is further increasing the pressure to provide positive outcomes that protect clients from financial harm. To tackle all these challenges, brokers need quality data more than ever.
Access to, and effective use of, a range of quality verified data and insight can significantly enhance a broker’s ability to price risks accurately, manage renewals efficiently, identify areas of underinsurance, comply with regulatory requirements, and provide valuable insights to their clients that deliver personalised journeys and drive up both acquisition and retention.
So, how can brokers use data more effectively?
Pricing Risks More Accurately
When brokers can efficiently access a wealth of financial data, sector-specific information, news updates, and accurate client insights, they can make quicker, well-informed decisions. By combining this data with sophisticated algorithmic calculations and data matching technology, advanced intelligence< can be utilised to accurately assess risks and inform pricing – as well as providing a more personalised experience for clients.
For example, spotting hidden loss ratios, correctly identifying limits of indemnity, and tracking emerging industry trends can enhance a broker’s ability to identify potential exposures that could not only impact risk pricing but also indicate the need for other services, such as risk management advice or claims management covers. Thereby not only helping brokers better price policies, but also helping them to mitigate potential losses.
Contextualised intelligence also ensures underwriting submissions are aligned directly with individual client needs and objectives (a Consumer Duty requirement). Brokers providing comprehensive, full, and detailed submissions increase their ability to achieve competitive premiums, as well as gain better access to products correctly balanced in terms of price and value.
Managing renewals effectively
Data analytics tools provide brokers with valuable insights into customer behaviour and preferences. This intelligence vitally informs the renewal process, allowing brokers to optimise risk management and access tailored policy offerings that align with the specific needs and expectations of clients.
Access to the right data and insight can ensure brokers are never blindsided by changes within their clients business or risk portfolio – changes in management, potential M&A activity, premises, financial risks, market opportunities and more.
Likewise, looking at changes in data can also help brokers develop a more proactive approach with underwriters ahead of renewal – discussing predictive limits and obtaining indicative prices, as well as importantly securing relationships with the right underwriter, with access to the right markets, before other brokers.
Identifying areas of underinsurance
Underinsurance remains one of the most prevalent and damaging issues impacting the insurance market in 2024. Brokers need data to tackle it with confidence – identifying customers most at risk and delivering better protection outcomes.
With access to a wide range of data brokers, can elevate their expertise and tackle underinsurance within their client portfolio in innovative ways – proactively identifying vulnerable clients; building a full picture of risks (material changes such as building, operations, indexation, inflation, supply chain, machinery, and plant exposures) and accurately pricing them; personalising engagement; delivering greater certainty around outcomes.
Complying with regulatory requirements
family: Data-driven technologies are increasingly playing a vital role in helping brokers meet compliance requirements, industry guidelines and reporting requirements – minimising complexity, reducing the time and cost burden, and building a more agile approach that consistently delivers better outcomes for both them and their customers.
A comprehensive view of needs and objectives means brokers can recommend suitable products and deliver continuous guidance and adjustments to policy coverage, ensuring they remain fit for purpose, and that needs, objectives, price, and value are consistently met.
A data-driven approach also makes it easier and more cost effective for brokers to evidence that they’re complying with regulations and demonstrating transparent accountability – delivering good outcomes, avoiding foreseeable harm, supporting needs, characteristics, and objectives, delivering good value at a fair price, and helping customers make informed decisions. Importantly, it ensures compliance doesn’t take time away from doing what they do best – helping clients to thrive. Bringing me nicely on to my final point…
Delivering personalised journeys
Surfacing insights derived from structured and unstructured data sources can provide new opportunities for brokers to engage and establish credibility through well-timed, highly relevant, and differentiated outreach. Not only does this help deliver highly personalised customer journeys, but also re-affirms that all-important ‘trusted advisor’ status, whilst driving growth.
A data-driven approach ensures brokers are automatically alerted to customer changes, market risks, and opportunities, and therefore always in a position to provide relevant support – not only at renewal time, but throughout the client lifecycle.
Acquiring new business and retaining clients are two of the most important aspects of sustainable broking. Adopting a data-driven approach means brokers can not only effectively price new risks, but also build strong, long-term relationships that drive growth and revenue.
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