Unleash the (huge) potential of your insurance data.
As the world becomes powered by digital transformation, the matter of data and how to use it efficiently is becoming increasingly important. For insurance companies, this means great opportunities to better utilize the amount of data generated by their businesses to become a long-term winner in the market.
Insurance is an industry driven by data. APIs (application programming interfaces), such as those used in open finance and now in open insurance, will enable insurance companies to collect data from their customers, competitors, and third parties. This will allow insurance companies to tailor the user experience, help companies retain customers, make internal processes more efficient, and improve customer service.
With a well-founded understanding of each customer’s individual insurance situation providers will be able to tailor their offers more accurately. For example, you can tailor your offers based on information about when they took out the insurance, what their age is, and whether they have gaps in their current insurance coverage. It will be significantly easier for the customer to understand what kind of coverage they need and find the perfect fit, which generates better and more long term relationships between the consumers and providers.
Data management and insights will become a strategic priority for insurers. But how do you actually use data to create business excellence? Below, we’ve gathered our four best tips on how to utilize customer data.
To tailor the user experience.
Gathering and sharing data in real-time offers the customer a better and smoother experience. By using digital authentication, the consumer can easily share their insurance data, in an app or on a website, as a basis for better insurance offerings.
In the same app or website, the consumer can also view all their insurance policies in one place, enabling well-informed decisions and improved insights. Consequently, the insurers can make sales more efficient, creating a win-win experience. You can, for example, tailor your offers so that they match the time.
As you probably are already well aware, it’s important to note that the shared data should only be used according to what the customer wants, needs, and approves of. Luckily, open insurance offers several ways to do this transparently. One practical example is to clarify for the customer what data is gathered, shared, to whom, and for which purpose - in every step of the process.
To help companies retain customers.
Today’s lack of a complete overview of consumers’ insurance policies (often paired with somewhat hard to grasp wordings) complicates their insurance experiences. It makes it hard for consumers to understand whether they have the right coverage based on their needs and their life situation.
Not making information more open for consumers can create a feeling that they’re not in control or that they don’t have enough information, which can undermine their trust in their insurance company. This is not what you want as an insurer, right? Luckily, there is a solution for this. When using open insurance, based on APIs and data sharing, the consumer will be more informed and in charge of their own experience. For example, they will know what policies they can switch between. In the long run, this will make customers more content and loyal. That’s what we call a win-win solution for all parties involved!
To make internal processes more efficient.
The sharing of customer data creates an opportunity to innovate and future-proof both new and old business models. The transparency of open insurance and data sharing creates a better understanding of how competitors work and what they’re developing, increasing innovation and promoting business development.
To improve customer service and relationships.
The insurance industry is often seen as complex with extensive terms and conditions, and there is a perception of paying for an eventuality that will hopefully never happen. Open insurance, however, will make insurance distribution more digital, which means more cost-efficient and compliance ensured. Because it’s all online, where the customers want to be, it optimizes the customer experience. In addition, it makes the relationship between insurance companies and their customers closer - creating opportunities for better dialogues and experiences.
The digital world is changing rapidly, and the long-term winners will be those businesses that learn how to benefit from innovation. Just as it was for open banking, it will be the same for open insurance Companies who try new technologies, such as APIs and data sharing, will have a massive head start in the continued digital transformation that drives the economy forward.