Insurers that have invested in analytics tools in the past year are just beginning to recognize their ability to manage producers and improve their performance with the technology, according to “Predictive Analytics in the Insurance Industry: Trilogy and Insurance Networking News Predictive Analytics Usage and Interest Study.”
"Predictive analytics are essential to driving better producer performance, and insurance companies are beginning to recognize the value and benefits of applying technology to this critical area of their business," said Joe Kelley, president of Trilogy Insurance & Financial Services.
Insurers also said they are effective with measuring agent/producer compensation (68 percent) and agent/producer production (68 percent), but less so with forecasting producer revenue (60 percent) and improving under-performing producers (56 percent).
More than half of respondents offer training, customer service and marketing support, coaching, competitive compensation for producers, and sales support to more than half of their producers, the report finds. However, targeting such activities is an opportunity; 76 percent offer training, 85 percent offer customer service support, and 55 percent offer marketing support; just 28 percent provided leads.
Data/analytics are most often used on customer-focused activities, such as customer segmentation (37 percent), improving competitive advantage (36 percent) and customer retention (36 percent). Just 12 percent are using data/analytics for fraud detection. The report concludes with the suggestion that offering producers access to predictive analytics could drive smarter distribution for insurers.
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