BI + Analytics + Metrics do not (Necessarily) = Love
Donald Light | July 07, 2014
How can this be?
I have been a customer of my primary insurer for over 20 years. I’ve had auto, homeowners and personal umbrella with them—with a substantial combined annual premium. You might think my insurer would like me to feel the love (and by the way keep me as a policyholder).
If that’s what you think, you’d be wrong. My current policy count with this particular insurer is down from three to two, and by year end it will be zero. To paraphrase an old saying: I did not leave my auto insurer, my auto insurer left me.
I can put up with a lot of indifference from my insurer, but I cannot put up with learning that my auto policy will lapse in two hours for non-payment of a renewal premium, without any prior notice of the premium due for the new term.
Here is the timeline of all communications I received regarding my auto policy (note the term ended on Sunday June 29, at 12:01 am)
- Thursday June 19: a printed reminder of my renewal was processed by my insurer
- Monday June 23: the letter with the renewal reminder notice was post-marked
- Around Wednesday or Thursday June 25 or 26, I received the letter from my insurer with no indication on the envelope about the urgency of the contents
- Saturday June 28 around 10 pm, I opened the renewal reminder notice which informed me that:
- To continue coverage a payment must be received by Sunday June 29
- And to make that payment, I could contact my company at a branch (closed at 10 p.m. on Saturday), or call toll free to a service center (also closed until Monday morning)
- Saturday June 28 from 10:15 to 10:45 pm: I visited a 24X7 website of another insurer, got a quote, spoke to an agent, had my coverage bound, and downloaded my certificates of insurance
- Sunday June 29 around 9 am: I got into my car and drove it, fully covered by my new insurer
- Since Sunday June 29: the number of communications I have received from my insurer (with whom I still have my homeowners and umbrella policies) = 0
How can this be?
My insurer is a large company. Professionally, I know a number of people there, and they are all knowledgeable and hard-working. The company has BI, analytics, and metrics capabilities.
So what went wrong? I don’t know, but I’ll take a guess.
- Analytics capabilities add value only if the right questions are asked and answered. For example, what is the lifetime value of multi-product policyholders whose policies non-renew?
- BI systems add value to operations when dashboards and reports include data about how the key activities impacting revenue, losses, and service levels, e.g. how many non-renewing policyholders failed to receive timely (or any) renewal notices?
- Metrics add value only when they are focused on the most important activities, and the right managers take appropriate remedial action as needed, e.g. is the number and kind of non-renewed policies at an optimal level, and if not, what will be done, by whom, and by when?
So here is an improved version of the equation in the title of this blog:
BI + analytics + metrics + the right questions + the right questions (should) = love.
(Note: some of the facts in this blog have been altered slightly in order to make the narrative and conclusions more general.)
(Donald Light is director, Celent Americas property/casualty practice. He can be reached at email@example.com.)
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Lucens Group Announces Corporate Name Change to Claimify to Reflect Commitment to its Software Platform
- The Co-operators Drives Innovative Claims Process with Guidewire InsurancePlatform Cloud-Based Predictive Analytics System
- Insurance Technologies Releases FireLight® e-Delivery to Seamlessly Automate the Delivery of All Insurance and Retirement Policies and Documents
- Global IQX API Unleashes Wealth of Data for Employee Benefits Insurers
- Survey: Millennial business owners most likely generation to work with insurance agents
- Duck Creek Technologies Reports 85% Bookings Growth and 30% Revenue Growth in SaaS-Delivered Enterprise Software Solutions for Fiscal Year 2018
- Optimum General Selects Guidewire InsurancePlatform for Core Operations
- Blue Cod Technologies Announces Corporate Name Change to Activer Solutions
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE