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Better Ways for Insurance Agencies to Use Customer Data

Insurers, along with many other industry professionals, have access to more data than has ever been available before. Every day, more and more consumer data is collected and disseminated. Insurers already have a strong interest in data – after all, the more data you have, the better the decisions you can make about risk levels and premium rates.

But you can also go further than that. Used correctly, access to data can also help you bring in new business and improve client satisfaction. Take a look at what you need to know about better ways your agency can use available data.


Selling New Policies

Marketing to existing clients means making certain those clients have the right insurance at the coverage level they need. For example, if your agency sells homeowner’s insurance, you should probably know that as many as two-thirds of homes are underinsured. This places homeowners at significant risk!

Of course, no one wants to pay for insurance they don’t need. But with access to client data, you can deep dive into the types of insurance and riders people routinely need in the locations or situations that your clients are in. This can help you make more personalized and useful recommendations to your clients, so they can upgrade in ways that will pay off for them in the long run.


Finding New Leads

Your agency’s data can also generate new leads for your business. One way to do this is to simply analyze which areas new inquiries are coming from and which policies are most in demand. Then you can focus your marketing and lead generating activities on those areas and policies.

Frequent and careful analysis may show you patterns that allow you to recognize when a certain place or policy is about to spike in popularity, allowing you to get in on the ground floor.


Give Clients More Control

Increasing self-service options for clients leaves more time for agent involvement where it matters most.

Self-service through digital technology as an option for clients hasn’t been as easily embraced by the insurance industry as it has by many other industries, in large part because it’s an industry that depends on personal relationships between agent and client. But research shows that improved digital technology both improves customer retention and decreases expenses for insurance agencies.

Analyzing your agency’s data can show you where your agents are wasting time on tasks that could be done digitally on the client end. This information allows you to make shifts to your business model. You might introduce self-service options where it makes sense for clients while focusing on more agent involvement in situations where personal communication makes a difference.

An organization like the American Agents Alliance can help to ensure that your agency is doing what it needs to do to thrive in the existing market. To find out more, contact us.

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