Cequity Solution Forthe Insurance Industry

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Driving new dimensions in Insurance Analytic Solution Over view The insurance industry’s dynamically changing scenario makes it imperative to utilize customer information more strategically than it …

Driving new dimensions in Insurance Analytic Solution Over view The insurance industry’s dynamically changing scenario makes it imperative to utilize customer information more strategically than it has been done in the past. All major insurance verticals like life, health, mortgage, and re-insurance face repeated challenges in the form of Deregulation, Consolidation, Customer Acquisition & Retention, Sales & Marketing and Risk Management.

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  • 1. Dri v i n g ne w di m e n s i o n s in In s u r a n c e A n a l y t i c s Sol u t i o n Over vi e w The insurance industry’s dynamically changing scenario makes it imperative to utilize customer information more strategically than it has been done in the past. All major insurance verticals like life, health, mortgage, and re-insurance face repeated challenges in the form of Deregulation, Consolidation, Customer Acquisition & Retention, Sales & Marketing and Risk Management.
  • 2. As developing markets mature and competition intensifies, the global Insurance industry faces unique challenges that impact established entities and those contemplating entry in the market. Demand and consumer expectations would force Insurance operations to differentiate themselves from the competition. Insurance companies world over have shown great successes by utilizing customer information and converting it into business intelligence using decision-science tools. An insurance firm, facing tremendous competition from numerous players, faced a staggeringly high rate of customer attrition. The company utilized customer satisfaction information held in their data warehouse to generate desired information on attrition. Coupled with other information like product usage, financial behavioural pattern, channel preference, demographics, etc. A predictive modeling exercise was undertaken which gave them ability to identify customers who are likely to attrite. The customers identified as being at a high risk for leaving were subjected to a number of retention measures resulting in significant reduction on number of attrition. By partnering with Cequity, Insurance companies can enable Integration of business intelligence and information to drive Insurance analytics and marketing initiatives. We believe that we can help Insurance companies get answers about “Who”, “What”, “When” and “How” about their customers as following: ■ Who are my customers? ■ Where can I find them? ■ What are they like? ■ How can I acquire them? ■ What do they buy? ■ How can I keep them? ■ What more can I sell them? Customer lifecycle Analytics Insurers have abundance of data across their organizations but most have not leveraged the full potential of this data in tracking customer behavior across the customer life cycle and translate that into informed actions. Actuaries have been using analytics for a long time to underwrite and price policies. However the use of data driven decision making across other enterprises of the insurance industry is rare in spite of the richness of the data. Some of our insurance data and analytical solutions will cover all aspects of an insurance business. Customer & Agent Acquistion Customer and Channel Underwriting Management Claims Servicing & Management a. Customer & Agent Acquisition Insurance companies use multiple channels to acquire customers viz agents, direct channels, bancassurance etc Insurance companies can exploit the power of analytics by using it for the following: ■ Analyzing attributes and behavior of customers and agents: The end result of these analyses should be to provide better and quality prospect lists, such as cross-sell and up-sell customer and agent prospect lists ■ Targeting the right customer for the right products: Propensity models could be developed to fit the best product for a particular profile of customer which would help in enhancing customer experience and increased profitability to the insurance company
  • 3. ■ Improving Channel Effectiveness: ■ Direct Channels: Improving effectiveness of marketing techniques by optimizing spend through segmentation and better understanding of current and prospective customers ■ I ndirect Channels: Improving decisions around sales and agent deployment and analyzing agent incentives and commissions Sustained analytics support can increase the life time value of the customer manifold. The product mapping below would give a brief idea the various opportunity created by analytics Yes Yes, No Yes, No Simple Base Product Upgrade Add on X sell 1 Product Upgrade Add on X sell 2 Product Upgrade Add on 3 or Su r v e y Su p p r e s s i o n Ne w Lis t Pr o d u c t 4 Que st i o n b. Underwriting Cequity believes that there are some areas where we can benefit from improved analytics: ■ Risk Profiling: Building risk based predictive models to manage the entire range of exposure from customer to product to entire portfolio ■ Product Pricing: Once such risk models have been created, it becomes simpler to create pricing tables that are determined by segmenting customers based on their risk and projected cash flows ■ Life expectancy model: This will help in accurately predict the survival probability of the insured ■ Identifying profitable and non profitable customers ■ Claims prediction modeling: This will help in better deployment of the capital of the insurance company c. Claims Servicing and Management Analytics can be used to improve claims processing in the areas of: ■ Understanding the pattern of fraudulent claims and predicting similar activities ■ Migrating customers from branch channel to more cost effective channels like net, tele, etc. ■ Analyze efficiency of servicing agents to optimize turn around time d. Customer Management Segmentation analysis, CHAID, logistic and linear regression methodology can be used to manage existing customers more effectively. ■ Build models of profitable customers and try to migrate the ■ Lapsation model of agents non profitable customers ■ Customer satisfaction index ■ Lapsation model of customers Key Benefits Thus these data and analytical solutions are designed: ■ To increase profitability and revenue, enhance ■ To increase ROI in marketing spend customer satisfaction ■ To strengthen relationships with channels ■ To reduce market costs by using spend optimization ■ To generate tailored cross sell and up-sell opportunities etc.
  • 4. Our Services CEQUITY’S services are powered with deep domain expertise and process excellence by adding Intelligence to Information. Our banking Analytics consultants are capable of generating effective solutions to your business problems and quickly provide you with a competitive price and turn-around time. Choose from a wide array of reports covering demographic trends, consumer spending potential, business profiles, consumer segmentation, activity volumes and more. Our Analytical Consultants are qualified to provide deep insights by objectively analyzing vast amount of customer transactional lifestyle and secondary data to help make quick business impact. Our consultants have rich experience in key verticals like: financial services, insurance, mortgage, retail, travel, entertainment & telecommunications. Our analytics services include: CEQUITY BIZACTION - Modeling Services Insight2Action Acquisition Models Insight2Action Value-build Models Insight2Action Retention Models Prospect Modeling and Scoring Cross-Sell/Up-Sell Analytics Churn Prediction Lead Scoring and Enhancement Lifecycle Profiling Attrition Models Optimal Contact Strategy Development Response/Conversion Modeling Portfolio Analysis CLTV Modeling Segmentation Models About Cequity Customer Equity Solutions (Cequity) Pvt. Ltd. is an IT-enabled Customer Experience Management Company which will help enterprises improve marketing performance and accelerates customer relationships. We help enterprises by combining data, technology and services to build actionable analytical marketing frameworks, optimize marketing performance and accelerate real-time customer engagement. Thereby, enabling greater ROI on their marketing technology investments. Cequity brings a blended perspective which allows companies to bring the power of Marketing automation technology to business problems. Our services include: Customer Management Consulting Managed Campaign Management Services Managed Analytics Marketing Operations and Measurement Services Marketing Database Solutions Event Driven Marketing Services Contact us: Customer Equity Solutions Pvt. Ltd. INDIA Mumbai Office: USA Chicago Office: 105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg, 626, Grove Street, Evantson, IL 60201 Mahalaxmi, Mumbai-400 011, India Phone: +91 22 23000133 / 23054039, Fax: +91 22 23053809 Website: www.cequitysolutions.com Email: info@cequitysolutions.com