With more data available from more and more sources, it is critical insurers have a data strategy in place to gain a clear view of the risks and opportunities they face. Findings of a new white paper by SSP, a leading global provider of insurance technology solutions, shine a light on the wealth of knowledge available to insurers to deliver greater insight on individuals and businesses.
By augmenting clients' risk details with this plethora of information, insurers can provide more accurate pricing and rating, as well as validating their existing data. As the number of available connections continues to rise, the ability to precisely evaluate risks is likely to lead to unique personalised pricing for each customer.
Such data enrichment increases the ability to manage risk, tackle fraud, build insights for new product design and or even boost the performance of company fleets. At the same time, insurers have a holistic view of individuals which allows them to provide customers with a more personalised and streamlined experience.
SSP’s paper explains how aggregating data from existing warehouses and third party sources makes it easier to recognise and evaluate trends. There are a wide range of data sources already available to insurers to augment their information, including:
- Proof of existence checks for businesses
- Standard Industrial Classification (SIC) code
- Company financial data
- Full mortgage and charge details
- Company capitalisation
- Alert indicators
- Legal data
- Proof of existence checks for directors
- Full director disclosure
- Propensity to claim
- Changed details at the application stage
- Telematics data
- Smart devices and RFID tags
- Local crime statistics for the area
However, insurers still have a huge amount to do to make the most of all the information available. SSP partner IBM estimates that 90% of all data generated by devices such as smartphones, tablets, connected vehicles and applications is never analysed or used.1
SSP believes that data should be integral to providing solutions to the insurance industry. The SSP Intelligent Quotes Hub is delivering sophisticated rating and pricing capability using data from a variety of sources, creating a single customer view across all channels. By working with partners such as LexisNexis, Experian and Equifax to get the right data and then modelling this effectively, SSP is delivering real value to individual insurers.
Dean Richardson, Head of Insurer Sales, Europe at SSP, says:
“There is no downside for insurers to data enrichment; data offers so many benefits from enhanced risk management and reducing fraud, to better pricing and improving their customer experience. It is clear insurers must have a data strategy in place or risk being left behind.
"At SSP, we have invested heavily in developing SSP Intelligent Quotes Hub to produce unique data insights for insurers and intermediaries. Only with as much information as possible, insurers can trade and quote in the most accurate and profitable way.”
Data enrichment is evolving and is forecast to become essential for commercial insurers in the next 18 months. Those insurers which augment their data to achieve better pricing and customer segmentation will be able to maintain a competitive advantage and gain market share.
Sterling Insurance Group is the latest insurance provider to join the SSP Keychoice distribution platform, offering a bespoke product targeted at the emerging wealth market. The new Executive Living product will be launched on 1 June and offers exclusive access to all brokers using SSP systems, including members of the Keychoice platform.
The product is aimed at individuals who may need contents insurance of up to £150,000, extending the reach of Sterling beyond its traditional High Net Worth (HNW) customer base. Making the product available on Keychoice will allow brokers to offer more choice to customers who may previously have been underinsured or not eligible for products providing higher levels of cover. This proposition is supported by Sterling’s award-winning claims service.
Adrian Coupland, Managing Director, Data and Distribution at SSP, said: "SSP Keychoice helps independent brokers and intermediaries to compete more successfully, with improved access to the market and products tailored to the specific needs of customers. We’re delighted to add the new Executive Living product to this offer, building on our successful partnership with Sterling."
David Sweeney, Director – Personal & Commercial Insurance at Sterling Insurance Group, commented: "The SSP Keychoice platform broadens our distribution reach and allows us to take what we are already doing well and expand it into a new and growing segment of the market. This exciting next stage in our partnership with SSP demonstrates our commitment to growth through continuing to offer choice and providing excellent service to our valued customers."
New white paper from SSP highlights increased demand for financial advice online
A new white paper by SSP, a leading global provider of technology software solutions, reveals that despite the rapid change and demand towards digitisation, the majority of financial advisers in the UK still prefer to service customers through traditional channels. Research conducted by SSP shows that, surprisingly, over half of advisers (56%) have no plans to implement a digital strategy in the coming year.
However, SSP found that almost half (49%) of UK professionals would consider paying for financial advice that is delivered online, which emphasises there is a growing need for an omni-channel approach to customer engagement.
This is clearly something that needs to be addressed. Given the prolific adoption of smartphones and tablets, particularly among the growing Generation Y, there is increasing demand from customers requiring financial advice that is delivered online.
SSP’s white paper calls for financial advisers to start putting in place the building blocks to ensure they are digitally relevant in the lives of their customers. SSP is encouraging financial advisers to focus on providing omni-channel advice and adopt a flexible technology platform, which can ensure advisers reach the right clients through the right channels.
Shaminder Gill, Head of Strategy and Proposition at SSP, said:
"The digital age is truly upon us. Digitisation is driving significant changes which are starting to be felt in the financial services sector. As the world continues to rapidly adapt to meet the changing consumer demands, financial advisers will also need to evolve to reflect the market conditions and be able to remain competitive in today’s marketplace.
We, at SSP, are continuing to make significant investments in our solutions. This allows financial advisers to benefit from new technology and functionalities across a range of channels, insuring they have systems in place to offer advice more effectively and reach a wider audience."