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%).

Related Life Practice Management Resources

Powered by

  • Having A Full Seminar Isn't Magic, It's A Science

    See why Revolution agents have succeeded in filling the room and why they are among the most talked about FMOs in the industry. See this all at no cost and learn the system all our agents use at our next free Las Vegas training!

  • The Power of Indexing: Minimizing Market Risk in Retirement

    For a limited time, Magellan Financial is offering download access to a sneak peek, sample version of one of the handouts from our all new Retirement Income workshop "Pillars of Retirement Planning".

Comments

Advertisement. Closing in 15 seconds.