6 Ways Predictive Analytics Is Changing Life Insurance

Technology is steamrolling all your “usual,” “comfortable” life insurance sales and prospecting methods.

But it’s a good thing. I promise.

Predictive analytics has become increasingly useful for life insurance producers

Let’s start with a quick definition of the technology, and then we’ll dig into six ways that predictive analytics will be a boon for your business.

What is predictive analytics?

First things, first. Let’s make sure we’re all on the same page with the basics.

Predictive analytics is the “analysis of large data sets to make inferences or identify meaningful relationships, and the use of these relationships to better predict future events.”

These tools can gather information from a wide range of sources, including social media, smartphone/device usage, interactions with care specialists or life insurance producers, etc.

So, without further ado, here are six ways that predictive analytics will help you reach your goals.

1. Risk selection and pricing

While this isn’t a fresh use of predictive analytics in life insurance, risk selection and pricing will benefit from the improved data insights.

The traditional method of collecting personal information focused on things like credit history or criminal records.

Advanced data analytics shifts the focus to first-hand data that’s gathered from smartphones, social media, and communication with claim specialists. 

You can imagine how much more accurate information that comes straight from the horse’s mouth is!

2. Concentrate on client loyalty 

No matter what is being sold, brand loyalty is crucial.

When it comes to life insurance, predictive analytics can look at the history of your loyal clients and use that information to predict what they may need in the future.

The data can also help you adjust your strategy or processes to better meet your clients’ needs.

3. Revamp the claims process

Predictive analytics also works on the other side of the claims process. 

The information collected can identify factors that may affect the result of your life insurance clients’ claims.

A process that once took weeks – sometimes months – can be streamlined and sped up significantly.

4. Managing data

Having a lot of data is great. It’s helpful for so many reasons, for both insurers and life insurance producers. The insights gained are invaluable.

But you can’t make the most of the information without some form of organization.

By this point, you shouldn’t be surprised that predictive analytics can handle this issue, too.

Here are a few ways how:

• Building a complete client profile.
• Identifying upselling and cross-selling possibilities.
• Projecting the profitability of clients in the future.

5.  Recognizing prospective new markets

Social media is kind of a big deal. 

With 3.2 billion worldwide users, it’s MORE than a big deal.

Facebook, Instagram, LinkedIn, etc. are extremely valuable when it comes to pinpointing potential new life insurance markets by analyzing behavior patterns, common characteristics, and shared demographics. 

Predictive analytics is all about the client experience

At the end of the day, as a life insurance producer, you want to generate revenue. And the way to do that goes back to how well you’re meeting the needs of your prospects and clients.

By streamlining processes, the people you’re trying to help will have, not only a much smoother experience but also a more individualized one.

A great General Agency will give you the training and support you need to put predictive analytics to work. At Leisure Werden & Terry, we’re here to help, from education to implementation, and more.