Insurance companies using data collection tools to gain a competitive edge

Insurance companies face new challenges as they compete in the digital age. Consumers can research rates, contact employees and even sign up for service without meeting agents face-to-face or calling the company's phone number. This can be a blessing because it provides consumers with the convenience to sign up through their preferred channels when they find the best deals.

However, in a competitive market, insurance companies must be able to reach new consumers and gain enough information to meet their needs or risk falling short. With a comprehensive data management strategy and effective data collection tools, insurance companies position themselves to better meet customer needs and demonstrate a strong commitment to developing customer trust. Understanding how your company can leverage consumer data can set you apart from the competition

What data do insurance companies collect?

Insurance companies collect a variety of data from various sources to better serve customers and respond to their needs. Like other industries, insurance companies collect contact information during customer interactions for the sake of being able to stay in touch with customers and provide them with valuable information and updates. However, insurance companies also have unique, industry-specific data collection methods.

Data collection has become especially useful at the scene of an accident or incident. Many companies use mobile apps that allow consumers to report the details of an incident. These reports can collect information like contact details, time and date of the incident and location details. This data is valuable for recognizing trends, understanding individual incidents and properly addressing claims.

The importance of data in insurance

When insurance companies focus on their data collection tactics, they can be certain they aren't losing any prospects in the pipeline and are providing their customers with the best product options. Data collection for insurance companies provides the ability to gain a single customer view, a complete data profile of a customer and their interactions with your company. This profile, when developed with quality data, provides a useful overview that can inform future interactions and potential ways to reach the customer.

However, companies that want to leverage these capabilities must be certain to use data collection tools like address management to perform email verification at the point of entry. Improved data collection processes and better analysis tools allow companies to enhance the quality and utility of their data to better serve customers. With reliable data, companies can focus on using it to find new potential clients, promote new products and even improve the customer service experience for existing customers, demonstrating a commitment to valuing customers on a personal level.

Establishing a more structured method for data collection and handling can also improve information security and help insurance companies avoid circumstances such as those that recently affected the Investment Industry Regulation Organization of Canada (IIROC), where the organization announced that an employee lost a personal device that stored 52,000 customers' personal information. Because insurance companies deal with such valuable and personal customer information, a secure data management system with security tools is necessary.

Maintain high-quality data

While insurance providers once relied on staff members to type in customer data, companies are now saving time and money by supporting self-service, the source adds. Unfortunately, this can also lead to a higher error rate if the proper tools are not installed to flag inaccurate or incomplete fields before they are saved and processed. Issues like typos, human error and improper formatting are prevalent during the data-entry process. Insurance data collection tools are highly valuable for maintaining high-quality data, flagging data quality issues and preventing incorrect or incomplete data from entering the database.

Incorporating the correct measures at the point of entry is one way to eliminate mistakes when larger volumes of data are being processed. Another strategy involves deploying a system that regularly cleanses information in its flow throughout departments. Data cleansing tools like email address verification are helpful at the point of entry, while tools like data monitoring regularly check the quality of stored data. These tools prevent incorrect information from entering databases and correct mistakes when it does. Verification methods are particularly important when firms are supporting online channels, which are very common sources of data entry errors.

Improve your insurance data quality

Altogether, effective data collection methods play a key role in allowing insurance companies to meet customer needs and remain competitive in the market. To learn more about the importance of data in insurance, contact Experian Data Quality today. Experian Data Quality offers a wide range of insurance data collection tools, including address verification, email verification and more. Position your company for success by effectively collecting and storing data. 

Originally published by Paul Newman, 2019.