Having a view of how you can reduce risk can be complex – unless you have the tools to identify this, such as a data composite like a risk score and ID validation.
It’s true that some of your insurer panel will be using scores already, within the quote engine. However, brokers can legally access data that insurers can’t in this respect and it’s possible for brokers to differentiate themselves by adding a greater depth of checks to their business. Unfortunately, insurer enrichment data is not likely to be visible for you to support your own business’s needs. The good news is that you can get access to the data scores directly as a broker.
Data scores can help provide insight into both credit and insurance risk. The former making it possible for you to vary your payment options to make sure your overheads are covered. The latter making it possible to improve the book of business that you process for your insurer panel. This can lead to more competitive pricing, increased commission or capacity. Running these data services alongside ID validation and previous claims data can also reduce the risk of fraudulent applications.
Scoring can be beneficial for defining the most appropriate financial agreement for your customers allowing you to adjust your premium or payment terms accordingly. Enriched broker searches and scoring can decrease defaults by 14%* as a result of using a scoring methodology to enrich your quotes.
Scoring is a win-win strategy that makes it possible to improve things for your business, your insurers and also for your customers.
Data sets can advise on credit risk for both consumers and businesses. It can confirm customer identity, the extent of their claims history, detect issues with their car, true value and number of owners. It can flag up known fraudsters and includes modelled demographic data when credit history is thin.
Being able to access this data at point of quote is key. It removes the need for manual checks and administration time later in the process and keeps price comparison partners happy as you reject less business at point of sale. The only thing left to score would be your customer satisfaction and retention score – which will undoubtedly have excelled as a result of lower premiums.
So, if you’re looking to accurately price quotes and reduce risk based on real-time understanding of the individual consumer please contact Adam Roberts at adam.roberts@experian.com
*Brokers using the data supplied from the Experian iCache have reported a 14% drop in cancellations – May 2016