The importance of Data Quality in the Insurance sector
Data is becoming increasingly valuable in the technology age. There’s also a lot more of it available as consumers become more comfortable with sharing their personal information through their connected devices.
However, data needs to be clean and accurate to add value to a business, and nowhere is this more important than for those in the insurance sector. Insurers need to have a deep insight on their data to be able to asses and provide accurate quotes, keep track of fraudulent activity, streamline operations and deliver effective customer retention.
A good place to start to ensure they are using accurate data is using an autocomplete service to deliver fast and precise address verification. This was something we recently covered in our blog Address Autocomplete for eCommerce: Better Conversion Rates. Using such a service will help deliver a seamless customer experience and therefore ensure better conversion rates.
Data quality tools like Melissa’s Address Verification service offers autocomplete functionality and more. It plays a vital role in not only validating and fixing incorrect customer addresses and other contact data, but delivers additional benefits, particularly to the insurance industry.
Assessing quotes: Today, insurers can use multiple sources of data to evaluate risk profiles of an individual or company. A particularly important source is our Address Verification tool, which provides a standout Geocoding solution for businesses like insurers. It can be used to pinpoint latitude & longitude coordinates to asses ‘risk’ in a specific location of earthquakes, fire or other natural disasters.
By being able to be so targeted with the geocode tool insurers can revaluate customer policies and potentially be in a position to lower their premiums, if the data provided allows – increasing customer retention.
Contact Data & CRM Systems: By implementing a contact data verification tool, such as our Address Verification service, it’s possible to verify a customer’s postal address, phone, email and even check for duplicate records in a CRM system. This will enable a faster processing time for claims and streamline operations. Marketing efforts will also be more effective with contact data verification enhancing the accuracy of contact details, enabling the insurer to communicate more efficiently by email, phone, post, etc.
ID & Fraudulent Claims: It’s possible to improve the process of identifying fraudulent claims by combining Melissa’s ID verification solution where an insurer can establish if a person is who they say they are – importantly matching them to the correct property – with the Address Verification product.
Data quality is key in preventing the use of misleading or incorrect information which can cause issues and increased costs down the line. Hence, at all touch points, new data sets should be checked and analysed to gain deeper insight and knowledge into customers and their behaviour. Having the appropriate data quality solutions ensures all policyholder information is collected accurately, which is essential to improving operational proficiency and creating a single customer view.