Filed Under:Life Insurance, Life Practice Management

Trilogy: less than one-third of insurers use producer-oriented predictive analytics

Photo credit: KROMKRATHOG
Photo credit: KROMKRATHOG

Less than one-third of insurers use predictive analytics software to help make business decisions about their producers, according to new research.

Trilogy Insurance & Financial Services, Austin, Tex., published this finding in a new study, “Predictive Analytics in the Insurance Industry, which surveys 109 individuals employed at insurance companies. About one-third of the respondents (32%) are employed at life insurers; more than half (54%) work in IT departments.

The survey reveals that just 29% of insurers are using customer and agent/producer predictive analytics solutions. This contrasts with 37% of companies that are using other statistical tools or predictive analytics for non-producer-oriented applications.

The respondents say that data and analytics solutions being used by insurers are more often customer-focused, helping with customer segmentation (37%), improving competitive advantage of insurance carriers (36%) and retaining existing insurance customers (36%).

More than 8 in 10 (82%) of insurers say that being easy to do business with is the most important priority in terms of managing producers, but only 6 in 10 (59%) believe they are fully effective in this regard, the study finds.

When questioned about their other top priorities, the insurers surveyed identify developing new products (75% of respondents), providing producers with the latest technologies (74%), supporting self-service (71%) and increasing producer retention (69%).

However, smaller percentages of respondents rank themselves effective in fulfilling these priorities, as indicated by the results: developing new products (66% of respondents), providing producers with the latest technologies (53%), supporting self-service (60%) and increasing producer retention (67%).

The survey states that more than half of the respondents provide at least 50% of their producers with training (76%), customer service support (60%), marketing supporting (55%), coaching (52%), and competitive producer and sales support (51%). Fewer respondents offer at least half of their producers compliance support (39%), new business processes (39%), development (35%), financial planning tools (34%) and leads (28%).

Most of the insurers surveyed say they are effective at measuring compensation (70%) and production (68%). Fewer of the insurers say they are effective in respect to forecasting producer revenue (60%) and improving under-performing producers (56%).

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Nichole Morford

Nichole Morford
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