Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

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

By Warren S. Hersch

X
Your article was successfully shared with the contacts you provided.

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%).

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.