The economy has hit hard in every aspect and is leaving insurance buyers questioning their policy costs, causing agents to re-evaluate their sales tactics. Despite the current economic state, there are steps insurers can take to better understand the changing insurance buying behavior and use business analytics to gain the competitive edge.
- Execute flexible approaches to manage uncertain conditions. – To implement fluid strategies in an environment of multiple unknowns, an insurer’s operational capabilities, infrastructure and corporate culture must support flexible, fast pace and good decision making–assuring agile performance with ACCOUNTABILITY. Monitoring the changes in loss exposure and loss development drivers will guide flexible adjustments to risk management and risk pricing.
- Anticipate, understand and address the impact of prospective regulations. – Asses the impact new regulations and accounting changes will have before putting them into effect. Also, consider enhancing the sophistication, articulation and deployment of the risk management standards and related systems compared to how they are now prior to the switch.
- Comprehend and act upon changing insurance buying behaviors. – Good marketing is all about having a clear understanding of the future customer. Identify, asses and then capitalize on the characteristics of tomorrow’s customer and tailor not only your products and services to meet their needs, but tailor you distribution channels as well. Stay in front of your customers base.
- Increase investments in core systems to boost growth and profitability. – The pressure has been building and pushing core insurance systems such as claims, policy administration, underwriting and billing, to change. But faced with limited investment alternatives showing attractive returns, many insurers are investing in themselves to position their operations for growth and improved profitability.
- Apply business analytics to address difficult top-line growth conditions. – Insights from business analytics can help guide both strategy development and execution. With more and more refined analytic tools coming onto the scene, more external data sources are available to feed into models, promising better analysis for decision making purposes.