A single customer view can help claims professionals work smarter rather than harder

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Effectively linked data can be applied across the whole of an organisation, from point of quote to claim and compliance 

James Burton 
Senior director, product management, insurance, UK & Ireland 
LexisNexis Risk Solutions

Would your claims team know with confidence that Mr John Smith-Jones at 10 Elton Avenue, London, who has contacted them regarding a burglary claim at his home, is the same JK Smith of 10 Elton Avenue who had a motor insurance policy with the brand four years ago, and is the same Jon K Smith at 1 Elton Avenue, London, who had a claim for escape of water three years ago with a brand your business acquired in the last year? 

High levels of switching, merger and acquisition activity, or data held in different silos has made customer data management one of the biggest challenges facing the insurance market today. And, this can all impact the ability to provide a smooth claims experience to the customer and help the market avoid fraud.

Aside from the impact on claims and customer service, duplicate or outdated consumer information can lead to inaccurate pricing, wasted marketing budgets, lost cross-sell and upsell opportunities, and unnecessary data storage costs. This can all have a detrimental impact on business profits and growth.

Access to an instant and accurate view of a customer at all touchpoints—not least in claims—puts insurance providers in a far stronger position to communicate effectively and serve that customer, based on their known history and experience with your brand. From a pricing perspective, this single customer view has become even more important to help meet the new Financial Conduct Authority rules and also to help deliver fair value to existing customers at renewal.

However, when you consider the volume of customer data held within insurance businesses and within distinct lines of business within that insurance provider—in marketing, quotation, policy administration, claims—it is easy to understand how challenging it can be to create that one holistic view of the customer. Some of this data may be held on older legacy systems that do not have up-to-date permissions and multiple brands can also mean multiple data sets.

This leads to numerous data touchpoints for the customer that may not be correctly linked and you end up with variations of data for one person. Text-based linking of the data is often used, specifically looking at name, date of birth and address. However, this has limitations if any of that key data changes over time.

A number of issues can occur if datasets are not linked effectively. Limited insights and disconnected customer relationships can lead to duplicate accounts and messaging, as well as an impersonalised customer experience.

The most obvious impact is on claims. The claim is the moment of truth for the insurance sector—if a claims professional knows at the first notification of loss for a burglary that this is the same Mr Smith who had the trauma of an escape of water incident and claim in 2018, this may affect the level of empathy and approach to that claim. If they also know that customer is close to renewal on his motor cover or has a commercial van insurance claim that is in process then again, the approach may alter. 

Fundamentally, insurance providers need a cohesive, single customer view across underwriting, pricing, renewals and claims. An insurance provider that knows the details of a customer’s wider insurance requirements, renewal dates and up-to-date contact information is much more likely to be able to carry out effective communication at all stages of the customer journey. Particularly in claims, knowing more can ensure that the customer is understood, supported and their claims can be settled as quickly and easily as possible.

The solution to these challenges can be found in LexID, a unique identifier built to work with proprietary linking technology and vast data resources, including insurance-specific data to match disparate identity information. LexID for Insurance finds common threads across customer records, pulling on a wide range of data sets, comprising circa 2.3 billion records, including public and insurance policy history data, to help build the picture of the individual to support all parts of the insurance continuum.

Effectively linked data can be applied across the whole of an organisation, from point of quote to claim and compliance.

For claims professionals, knowing with confidence that you have a single view of a customer’s history with your brand across all products and all touchpoints means you can work smarter rather than harder on delivering a claims service that individual customer deserves.

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