This article is part of a series sponsored by AgentSync.
4 qualities that distinguish good insurance business data from bad
America may run on Dunkin’, but insurance runs on data. Data affects every part of insurance. Underwriting, ratings, pricing, forms, marketing, claims processing—you name it, data impacts it. Even the foundation of our beloved industry is built on actuarial tables, which are made up of hundreds of statistical data points used to better predict risk.
Good insurance companies use data to better understand their customers. Better insurance companies use data to support not only their customers, but also their producers and their own processes. Bottom line: Data is key to driving organizational growth. But the business decisions you make are only as good as the materials you use to make them.
What’s so good about insurance business data?
With good data, companies can make informed decisions about their processes and improve the way they operate. But what makes data “good”?
accurate and complete
Businesses have access to all the data in the world, but if the information is out of date or incomplete, it’s of little use. Consider the producer onboarding process, or, to make things a little more complicated, Variable Line Broker Onboarding Process.
Getting a new variable lines broker on board and ready to sell requires gathering a lot of data. From background checks to E&O policies to verifying state insurance licenses and FINRA registration, it’s critical that the information you receive is accurate and up-to-date to ensure no surprises occur. Sales using expired or invalid licenses.
Inaccurate and outdated manufacturer or variable line broker profiles can add uncertainty and unnecessary costs to a company’s distribution management process, negatively impacting the ability to adapt and expand.
it is structured
If you want an in-depth explanation of the difference between structured and unstructured data, you can read all about it hereThe main thing to note is that unstructured data (such as emails, Word files, and paper documents) are much less efficient, accessible, and secure than structured data.
Too often, unstructured data is confusing, redundant, and inaccurate. Think about how difficult it is for an insurance agent or customer service representative to answer policyholder questions when their personal information and policy data are scattered in many different locations. A simple task, such as adding a new car to your car policy, is much more tedious.
With structured data, information is collected, organized, and stored in a way that makes it easy for people and technology to access and analyze it. Structured data gives business leaders a clearer picture of what is happening in every part of the organization and in every step of the business. their process.
it is customizable
If you’ve ditched locally stored spreadsheets and paper documents in favor of a cloud data warehouse, you’re on the right path to unlocking great data. Often, the modern software systems you use to store your data can provide you with the insights you need to make smarter decisions by organizing it into reports and dashboards.
It’s fairly standard these days for software vendors to provide a common set of reports that your company can access with the click of a button. However, producing more detailed, specific and customizable reports may not be possible, at least not without increasing costs. (Shameless brag: At AgentSync, we believe your data is your And you should be able to use it however you want without paying extra).
With the ability to slice and dice business data to meet specific needs, insurance companies, MGAs/MGUs, and agencies can expose process roadblocks, team inefficiencies, growth opportunities, and more.
it is easy to digest
If you’re not particularly technical, the amount of material can be intimidating and difficult to digest. While it’s important that materials are easy to read and share across the technology stack, sometimes the human side is lost in translation.
For example, when you think of a producer’s permissions for a license, you might think of words (such as life, health, property, and casualty) rather than numbers. Your producer management software may analyze and interpret the permission usage numbers each producer has, but if the information isn’t presented to you in a way you can easily understand, it’s difficult to put the data into context and do something with it. Make informed business decisions.
How better data can benefit your insurance business
So your data meets all of the above criteria, now what? Insurers, MGAs and agencies should use their data to evaluate their current processes and drive vertical and horizontal growth. With good producer data, insurance organizations can:
- Eliminate workflow bottlenecks: Basic business processes like producer onboarding can be painfully slow with outdated, unstructured data. Your compliance team can spend weeks (or even months!) tracking down all the information needed to verify a manufacturer’s license. Having accurate, up-to-date data your team can easily access when they need it most makes the entire onboarding process faster and less painful for everyone involved.
- Improve producer experience: Is there a point of decline where producers are most likely to be lost? Will it take a long time to get new producers on board and ready to sell? Your data can tell you this! In a time when recruiting and retaining top talent is harder than ever, creating a world-class producer experience is critical to your organization’s growth and success.
- Reduce expense: Unreliable producer information can cost you more than you think. For starters, there are more obvious costs. Compliance violations such as missed renewals, CE deadlines, or appointments can come with considerable costs. There are also less obvious (but no less costly) expenses associated with bad data, such as operational inefficiencies and wasted labor. Access to accurate and complete data exactly when you need it can eliminate these unnecessary costs.
Unleash better business data with AgentSync Manage
Carriers, agents and MGA/MGUs rely on high-quality data to improve their processes and drive growth. Unlocking your insurance organization’s data provides a clearer view of your distribution pipeline, a better understanding of which partners drive growth, and the ability to identify expansion opportunities so your business can scale intelligently.
With AgentSync Manage, customers have access to the latest producer license and reservation data in one convenient location. Our custom reporting capabilities give you a complete view of your distribution channels in a way that best suits your unique business needs, with no additional action required. If you’re ready to use better data to make better business decisions, Schedule a demo today.
