Tim Dimond-Brown, Head of EMEA North, from GMC Software

Data already plays an important part in the insurance industry, but an opportunity is being missed to do more with it. Insurers and brokers can become increasingly agile by using customer data for more than just calculating premiums: they can provide better knowledge, prevent risk and keep costs down, building trusting long-term relationships.

Here are three ways in which insurers and brokers could use data to provide a great customer experience:

• Manage communication preferences.
  Existing customer data must be used to inform all communications. If somebody doesn’t appreciate telephone contact, don’t call unless it’s an emergency, but if they have indicated they’re open to approaches with market and product updates via email, make sure the need they expressed is met through the correct channel. With channel preference management, accuracy is critical.

• Inform customers faster and better. The amount of data available on customers is set to increase in line with the rise in connected objects. In the short term this has meant tracking devices placed in cars, and is sure to begin affecting other aspects of insurance; for instance, fitness trackers affecting health premiums. This data must be acted upon to fuel internal actions and inform communications with customers.

• Build meaningful relationships. By taking customer’s wider situations into account, insurers and brokers can start to play a more valuable part in their lives. If they take out travel insurance, for example, there’s an opportunity to send them updates and alerts on areas they’re visiting, to help reduce any risks which might lead to them needing to make a claim. Taking this approach will build a strong relationship, as not only does it prove their custom is valued, but it will also help them to make informed decisions.

You may well already be using data for these ends to a certain extent, but it could prove an invaluable exercise to conduct a mini-review to identify other opportunities to use data that you are missing. Taking the time to join the dots in this manner will prove an effective low-cost tactic to provide better customer service than ever before.