Trilogy: less than one-third of insurers use producer-oriented predictive analytics
By National Underwriter
By Warren S. Hersch
Less than one-third of insurers use predictive analytics software to help make business decisions about their producers, according to new research.
Trilogy Insurance & Financial Services, Austin, Tex., published this finding in a new study, “Predictive Analytics in the Insurance Industry, which surveys 109 individuals employed at insurance companies. About one-third of the respondents (32 percent) are employed at life insurers; more than half (54 percent) work in IT departments.
The survey reveals that just 29 percent of insurers are using customer and agent/producer predictive analytics solutions. This contrasts with 37 percent of companies that are using other statistical tools or predictive analytics for non-producer-oriented applications.
The respondents say that data and analytics solutions being used by insurers are more often customer-focused, helping with customer segmentation (37 percent), improving competitive advantage of insurance carriers (36 percent) and retaining existing insurance customers (36 percent).
More than 8 in 10 (82 percent) of insurers say that being easy to do business with is the most important priority in terms of managing producers, but only 6 in 10 (59 percent) believe they are fully effective in this regard, the study finds.
When questioned about their other top priorities, the insurers surveyed identify developing new products (75 percent of respondents), providing producers with the latest technologies (74 percent), supporting self-service (71 percent) and increasing producer retention (69 percent).
However, smaller percentages of respondents rank themselves effective in fulfilling these priorities, as indicated by the results: developing new products (66 percent of respondents), providing producers with the latest technologies (53 percent), supporting self-service (60 percent) and increasing producer retention (67 percent).
The survey states that more than half of the respondents provide at least 50 percent of their producers with training (76 percent), customer service support (60 percent), marketing supporting (55 percent), coaching (52 percent), and competitive producer and sales support (51 percent). Fewer respondents offer at least half of their producers compliance support (39 percent), new business processes (39 percent), development (35 percent), financial planning tools (34 percent) and leads (28 percent).
Most of the insurers surveyed say they are effective at measuring compensation (70 percent) and production (68 percent). Fewer of the insurers say they are effective in respect to forecasting producer revenue (60 percent) and improving under-performing producers (56 percent).
Originally published on LifeHealthPro.com