Now this is a million dollar question! The underwriter’s performance determines the premium coverage that you get and hence determines the business profitability. It’s a fine balance so that you don’t overprice your premiums and become unattractive and at the same time do not underprice and expose yourself to risk. While underwriting quality is important, productivity is also of critical importance. Superior productivity would mean shorter TAT, faster policy issuance and hence increased customer satisfaction.
GrayMatter recognizes this need and hence its pre-built industry analytics solution, called IA+, comes pre-packaged with key predictive analytics methods and algorithms. Some of these methods are listed below:
- Product Recommendation: Recommending top 3 products to be positioned to a potential customer by analyzing demographics, purchase behavior, social media profiling etc. Matching specific products for the customers who would be more willing to buy, increases sales conversion ratio
- Product Positioning: Bundling or grouping of products to be positioned for sale to a particular prospect e.g., application of association rules can identify a trend that customers in late 30’s who bought investment linked policy, also bought term Insurance. In this case, these two products can be bundled with a promotional offer for people in late 30s, with an expectation that both products will sell more
- Minimize policy lapse: Predict insurance lapse with the help of regression models using data from customer demographics and interactions. Proactively address the customers whose policies are likely to lapse and try to retain these customers
- Opportunity servicing for existing customers: Change in life status (marital status, occupancy, health) necessitates changing insurance needs. Regression modelling can help predict which new product or product variant needs to be positioned to meet the customer’s current insurance needs.
- Campaign Effectiveness: Selecting prospects for a campaign based on likelihood of purchase determined by historical analysis of demographics, purchase behavior, product preferences etc. Identification of a targeted audience leads to more effective campaigns and lead generation
The methods listed above go a long way in increasing new business acquisition and boosting existing business by enhancing renewal percentages! IA+ has a lot more to offer, across all functional areas of Insurance Business. Go ahead and explore!