Virtually all decisions made in the insurance industry are made around foresight. This entails far more than just educated guesswork, as market leaders have to leverage a wealth of information and account for numerous variables when crafting predictive analytics around policies, claims and risk.
Playing a leading role in this process is location intelligence, which combines big data, location insights and geoenrichment to create a single view of risk. This vantage can be tweaked to apply to a single customer or an entire region, giving insurance professionals the tools they need to improve outcomes across the entire business.
At its core, applying location intelligence in the same way market leaders do can help insurers of all sizes get the most out of their BI investments throughout the customer journey. Whether an insurance professional is evaluating a potential client or handling an existing customer’s claim, data sets related to crime, Master Location Data and social variables alongside geospatial factors helps insurers take a proactive role in managing the client relationship, as opposed to simply reacting once an event takes place.
When writing new policies, for instance, detailed location intelligence on a property can help insurers identify opportunities and detect risks that others may miss. This entails not just having insight into weather patterns or nearby fault lines, but also demographic and population insights that might trigger a need for higher rates. This helps insurers to effectively determine how much capital to keep in reserve to pay out claims after a major event, among other proactive decisions.
This also enables insurers to deliver accurate, competitive pricing by getting granular in evaluating the variables that will determine a policy. While some insurers may do a blanket base rate for a specific region, competitors can drill down deeper than just a zip code when conducting their policy analysis, potentially revealing lower or higher risk at specific addresses. In competitive markets, this can give insurers an edge that allows them to understand what specific policies a customer truly needs, allowing them to tailor their client relationships rather than offer a blanket prescription to all prospects.
Lighthouse is happy to show you how market leaders visualize total portfolio exposure and handle claims with precision by using location intelligence, giving you the knowledge you need to succeed.
This is a re-published blog; also appearing on Pitney Bowes' website. Authored by Paul Davenport, Content Manager of March Communications; on behalf of Lighthouse Computer Services, Inc. and Pitney Bowes Inc.