Joining the growing ranks of insurers embracing the cloud, Texas-based P&C Aggressive Insurance Group is adopting a pair of software-as-a-service (SaaS) solutions from One, Inc.
The solutions, ContactOne and ProcessOne, will enable Aggressive to automate communications with insureds and simplify payments, respectively. By choosing cloud-based solutions, Aggressive can anticipate reaping the benefits of more advanced core software without the high capital costs, extended project times, and ongoing technology ownership burdens associated with on-premise applications.
One, Inc.’s ProcessOne is a cloud-based payments-and-reconciliation solution that enables insurers to set up self-service payments for insureds, automates routing, and simplifies reconciliation of daily transactions. The solution uses a token-based validation approach that eliminates the need to store customers’ credit card information—thereby easing PCI compliance and alleviating common security concerns. (PCI refers to the Payment Card Industry data security standard.)
Also, because One, Inc. acts as a third-party processor for Aggressive and charges customers a transaction fee, the insurer does not have to pay out-of-pocket to license the software.
ContactOne is designed to help insurers increase customer retention by automatically sending reminders about upcoming and recent policy expirations via voice, text, and email. Proprietary algorithms help optimize retention by contacting insureds when they are most likely to respond.
Through its integration with ProcessOne, ContactOne also makes it easy for insureds to renew by including links to payments pages and voice prompts that take insureds directly to Aggressive’s pay-by-phone interactive voice response (IVR) system.
Studies by J.D. Power and others have shown that increased digital engagement can help P&C insurers retain customers, especially younger “digital natives” who have high expectations when it comes to multi-channel interaction. Investments in retention have also been shown to yield higher returns in terms of profitability than investments in acquisition, which tend to pay off more in terms of marketshare.
A broader technology strategy
According to Richard Asprey, CEO of both Aggressive and Celestite Holdings, the managing general agent and corporate parent of Aggressive, the adoption of One Inc.’s SaaS solutions fits into both companies’ market strategies on several levels.
For Aggressive, the ProcessOne and ContactOne improve customer experience and retention while reducing costs. For Celestite, deployment of the two solutions represent another step in a long-term initiative to fully leverage the ubiquity of smartphones and other mobile devices for competitive advantage.
“The historical model for MGAs—which entailed acquiring customers via retail agents and then asking the customer to mail them a check—makes little sense in today’s market,” observes Asprey. “Our vision is to empower customers to fully engage with us via their smartphones to address all their payment and endorsement needs, so we can make it as easy as possible for the customer to get those needs met.”
Above and beyond that, Asprey believes that keeping Celestite at the forefront of technology will enhance its value and brand power across all of its constituencies—including insurance and re-insurance companies, independent agents, and policyholders.
“Celestite’s ability to provide others with ready access to market-leading digital capabilities makes us a very attractive partner,” he says. “We will continue working with technology developers like One, Inc. who share our vision and demonstrate such an outstanding ability to execute on that vision.”
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