Feature Story:
Prefill Provides Better Service, Lowers Operational Expenses, and Improves Premium Accuracy
It's no secret that insurance is an intensely competitive business. The property/casualty industry spends more than $4 billion annually in clever advertising campaigns vying for consumers seeking lower rates, better coverage, or better service.
But enticing prospects into making that first call for an insurance rate quote is only the beginning of the challenge. The market leaders have also learned that streamlining the quote process can yield measurable competitive advantages in terms of a better customer experience, lower operational expenses, and improved premium accuracy.
Complicating matters is the amount of information necessary to rate a homeowners policy. Realistically, most people don't know offhand how far their house is to a fire station or hydrant or the estimated replacement cost of their home.
Data prefill at the point of quote can help underwriters fill in the blanks.
Prefill has become a hot topic with property writers. The rationale for prefill is simple: It provides faster and more accurate quotes benefiting policyholders, agents, and insurance carriers.
The prefill concept involves moving much of the data acquisition up front — at the beginning of the policy life cycle — in contrast to traditional approaches, where agents order third-party data and reports only when customers make purchase decisions.
There are several forces at work driving the prefill movement:
Better customer experience
Nearly 50 percent of consumers abandon an online quote because the process is too long or too difficult. And a homeowner may not know important details about a property, such as how far a home is from the coastline, if a property is in a flood zone, and information about a home's construction, such as the year built or the type of material covering the roof. Prefill makes it easier and faster for consumers to get an accurate quote using virtually any sales channel, including agent point-of-sale applications, call centers, and online quote systems.
Sales conversion lift
Reducing callbacks for missing information is a time and cost saver. Prefill can significantly reduce the number of callbacks necessary to complete the quote and sales process. Fewer callbacks should result in more sales.
Carrier expenses
Faster quotes translate into more productive agents, whether at the call center or in the field. Therefore, agents can generate more sales without increasing marketing and operational expense. Alternatively, to reach a given sales target, a carrier should need fewer sales agents. Prefill can also reduce post-issuance follow-up by the carrier to chase missing or incorrect information.
Premium accuracy
Prefill can improve quote accuracy and reduce premium leakage, whether the error was intentional, an honest mistake, or an instance where the customer simply doesn't know the answer. With prefill, agents have access to a wealth of information, including property risk hazard data, estimated replacement costs, and claims details and dates, among others. Prefill improves rating accuracy at the point of quote, reducing errors and minimizing the need for policy changes after issuing a policy.
Cross sell
Most carriers recognize the measurable retention value associated with a multi-line account. As a result, cross-selling is an important sales strategy. Prefill can provide several important data elements in support of a successful cross sell program. For example, a carrier can run certain property searches in the background while the agent completes the automobile quote. Distance to coast or fire protection class might be underwriting considerations that lead to a proactive cross sell attempt or not.
QuickFill is ISO's prefill offering. QuickFill data is available for personal and commercial property and personal auto.
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