You’ll find us talking on here about insurtech and digitalisation, and there’s no doubt that the leaders of the pack will have been heavily investing in both over the past few years.
However, you’ll also see us constantly focusing on the underlying principles behind both as a practical, reasonable, scalable and therefore affordable way for you to help your business cope with today and thrive tomorrow.
Make the right choices for you
While we are great believers in the positive outcomes that can flow from intelligent and appropriate use of the most up-to-date techniques, it’s very important to realise two things. Insurtech is not some monolithic enterprise that requires the kind of investment that only richly-funded outfits can muster and, secondly, what one company might view as intelligent and appropriate doesn’t mean it’s the right thing to do for your business.
I’ll give you two examples. One company, which already completes most of its business online decided to invest in the technology and resource to analyse (not in real-time) the thousands of quotes they saw a month across a range of conversion and retention rates by various quote elements. That investment cost around $50k to set up but enabled on-going analysis to be run in-house through existing resource and software. As a result, they were able to fine-tune their commission for individual categories of business to optimise for longer lifetime value and will see their investment returned within 9 months.
The second company, while being able to offer quotes online, writes as many policies offline as it does online. Quote and policy data exists, but they weren’t routinely extracting that data to be able to scrutinise results in order to make informed change.
Using only Microsoft tools as part of their Office package, we were able to help them better understand the business they were writing and, just as importantly, the business they were writing but that actually cost more to write than they could earn over their chosen return period.
Conversely, they had an idea of what kind of business they were losing, but the analysis was able to help them pin-point the reasons why they were losing it, and they have now started to make some changes to help plug the gaps. Their next step is to look at true mid-term cancellation rates and the main drivers behind them and apply the same thought process, to focus them on retaining the right business for longer.
Insight driving growth
While the solutions were significantly different in each case, and each example required quite different approaches, with the appropriate application of technology, those businesses were able to improve processes and results. In anybody’s book, they are both successful examples of insurtech being used to make positive change for both the client and their customers, regardless of the very different methods, and investment, being used to drive that change.
The other element that both businesses now have in common is a new confidence that flows from seeing what an intelligent and appropriate use of technology can do for their business, how simple it can be to implement, and the beneficial change it can deliver. With or without our help, they are both continuing to examine how best they evaluate ongoing performance in other areas to help themselves and their customers even more.