What does Technology have to do with personal relationships as a mutual insurer?
A recent Insurance Journal article highlighted 10 items that regulators critiqued insurers on during a market conduct survey; of the 10 items that regulators surveyed, 8 of them can be solved by using solid technology options, such as Priority Data’s PDSpectrum or Agent Rating software. From reading this article we also observed that all 10 highlighted points are directly related to the relationship an insurer has with its customers. Through our business relationships with insurance companies we regularly see a failure to apply rates, rules, and guidelines correctly (item #10 on the linked list) when implementing new customers. One of the ultimate relationship killers between a customer and insurance company is not pricing consistently or correctly; imagine finding out your mechanic had been over charging you for the past 6 months, and its easy to see why a customer would want to switch to a new mechanic. It is important that mutuals have a solid system with a rate and rule engine that is reliable, accurate, and minimizes the chance for human error.
So beyond accuracy in underwriting and claims how else does technology help?
On our LinkedIn Page, we recently highlighted a good article from propertycausalty360.com that discusses the benefits to explaining homeowners insurance policies to their customers. Using everyday technology tools, such as email, social media, and custom cover letters to educate your customers, is a simple and low cost strategy that can directly strengthen your existing relationships. Helping insureds understand the difference between “replacement cost” and “market value” is also important to your customer relationship at the time of a claim or when they are shopping alternate insurance companies. Even using a solid calculation tool, such as our partner e2Value, can definitely help insurers credibility with their customers, and ensure that you are not only competing on price but also providing additional value to the insured.
By implementing a strategy that uses solid technology solutions, insurance companies can focus on their customers by building strong relationships that have a direct impact on the longevity of their business.