How to Select the Perfect Insurance Company in a Data-Driven World

Posted on March 8, 2019 by in Real Estate

How to Select the Perfect Insurance Company in a Data-Driven World

In today’s data-driven world, you may be wondering if your insurance company is prepared to keep up with changing times.

Data is now the most valuable and significant asset available to insurance providers. Unfortunately, the vast majority of companies in the insurance industry don’t take full advantage of the benefits of big data.

Insurance companies that fully embrace and utilize the capabilities of data analytics have the potential to reshape the customer experience for policyholders across the industry. Below are tips for choosing the perfect insurance company in a data-driven world.

Basic Transactions are Simple and Streamlined

Data-driven technology, machine learning, and other digital solutions streamline processes while adding value to the customer journey. Features such as digital claims status tracking and automated claims segmentation now offer customers a real-time overview of their accounts.

A fast and intuitive claims process is one of the essential qualities that a data-driven insurance provider should offer.

For most insurance companies, a complete transformation of the traditional systems – featuring end-to-end digitization – is necessary to optimize claims processes for policyholders. While some companies have undergone superficial improvements to their claims process, others have taken this step much further.

Lemonade Insurance, for example, says that it processes a quarter of its claims in just three seconds thanks to its artificial intelligence. And consumers certainly seem to appreciate the speedy process — nearly 90% of consumers rate their claims experience positively based on Lemonade insurance reviews.

Find out more about Lemonade Insurance.

Digitally savvy insurers use intuitive online tools with self-serve and intermediary options. Customers don’t need to wait for a claims adjuster to begin their journeys.

Data-driven insurance companies will have consistent system interfaces based on identical structural, logical, and storage functions. As a result, policyholders can start the claims process online and continue the process in person without having to repeat any steps.

Humans and Machines Work In-Sync

Insurers prepared for the digital age are offering synchronized solutions for their policyholders. Modern insurance company websites and apps provide chatbots that can quickly assist customers with common issues and frequently asked questions. Using artificial intelligence (AI) and digital evaluation tools, modern-day chatbots know when to transfer customer inquiries to a human agent.

The most successful AI applications reduce the number of touch points for policyholders, resulting in a speedy claims process. Additionally, predictive insights enable insurance companies to cater to your future needs. With this relevant and reliable data, insurers can prepare themselves to evolve along with customer needs.

Products are Simple and Accessible

Navigating insurance products and services used to be a confusing and challenging task for customers. Fortunately, data-driven insurance companies are starting to simplify their product offerings and improve their accessibility. In an optimal situation, the carrier will find ways to streamline product offerings while providing a plethora of coverage options.

In addition to clear and straightforward policy options, policy and claims functions should be readily available through multiple channels. Insurance providers with the most efficient mobile apps offer the most comprehensive features to policyholders through an easy-to-use navigation menu. Many insurers provide basic applications to view a digital insurance card or contact an agent. However, some offer advanced features such as 24/7 access to virtual assistants, claims reporting, and call roadside assistance.

Premiums Based on Personal Habits

  • Some insurance providers are offering lower premiums thanks to telematic devices that can record customer behavior. For example, auto insurance companies can track driving habits with the help of mobile telematics. The information provided by these devices allows insurance carriers to better evaluate an individual’s risk and reward good drivers with lower rates.
  • Progressive was the first American carrier to offer a telematics tracking program in 1998 with Snapshot. Since then, millions of drivers have started to use the devices to take advantage of insurance companies’ incentive plans. Companies typically base rewards, or penalties, on six months of tracking data. Find out more about Progressive Snapshot.
  • In recent years, other insurance companies have started to follow in Progressive’s footsteps. For example, Allstate now offers a Drivewise mobile app that uses smartphone-based tracking. Most providers still use hardware devices that plug into a vehicle’s diagnostic board.

Unique and Innovative Customer Journeys

Insurance providers that combine big data, analytics, AI, machine learning, and conventional technology platform updates are significantly enhancing the customer journey and experience. No single piece of technology can transform the interactions with your insurance provider. Instead, a combination of data-driven tools comes together to change and evolve the customer journey.

Innovative carriers will seek to personalize the customer experience in a way that goes above and beyond expectations. For example, AI technology combined with aerial photography can quickly and easily assess property risk. Homeowners can then receive notifications to repair a roof, update coverage, or track building permits. Big data combined with the Internet of Things (IoT) gives policyholders access to similar preventative tools and notifications.

Find out how Hippo is disrupting the homeowner’s insurance market with technology and artificial intelligence.

To learn more about the top car and homeowners insurance companies in 2019, visit

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