Overcoming Underwriting Challenges: Hitting a “Hole-in-One” at Rate Call 1

As the insurance industry shifts to stay relative and profitable amongst growing competition and tight margins, the bar for carriers seems to be set higher than ever before.

Society is introduced to newer and better technology year after year, and customer expectations have grown along with it. Consumers now expect effortless buying experiences across all industries, and shopping for insurance is no exception. Policyholders expect a seamless application process that segues into a quick and accurate quote – the first time, every time.

Below, we discuss the underwriting challenges that are likely adding friction to your quoting processes, as well as steps you can take to alleviate them and master a “hole-in-one” at Rate Call 1.

Common Underwriting Challenges Hurting Your Quote-To-Bind Ratios

Traditional quoting processes rely on consumers to self-report, which is an issue in and of itself. One in 10 Americans provide false information or omit important data when buying auto insurance, and it’s been estimated that over 51% of drivers are not truthful about violations or crashes.

Some have also implemented shorter application forms for quotes as a means of “enhancing” the customer experience. This is a risky approach, for it creates huge holes for underwriters to fill. They are now missing key data pertaining to the prospective policyholder’s risk, such as driver’s license information, that is critical and necessary to obtain when checking for violations.

Without the RIGHT data, it’s nearly impossible to hit the nail on the head with an accurate quote at Rate Call 1, resulting in customers receiving multiple quotes, each one most likely higher than the next.

Falling Short of the Customer Experience

Have you ever filled out a long, tedious insurance form that has required you to provide your driver’s license AND violation information – just to get a quote?

While it was once the norm, those still putting consumers through the wringer to accurately price risk are sacrificing the one thing that will help them remain competitive in this space – the customer experience.

Remember, as our access to newer and better technology grows, our expectations as consumers grow with it. Take Amazon for example – the shopping experience is hard to beat. With one tap of a button, (or even a voice command to Alexa) almost anything you need can be sent right to your doorstep, sometimes that very same day.

This level of simplicity, automation and convenience is now the standard expectation when shopping or researching online. Thanks to companies like Amazon and Google, our new narrative is, “How can we get the RIGHT answers RIGHT away?”

And as our reliance on technology inevitably grows, insurers that are unable to prioritize the needs of their consumers will continue to struggle bringing in and retaining business.

Steps Insurers Can Take to Master One-Rate Acquisitions

This inability to provide a quick, seamless customer experience paired with missing the mark at Rate Call 1 is costing carriers dearly – from low conversion rates and customer retention to poor loss ratios from unforeseen risk.

How can insurers combat this to remain relevant, efficient and profitable?

Access the RIGHT Data

Data packages are a waste of time, money and manpower. Instead, ensure you’re leveraging solutions that provide targeted driver data, including real-time access to license numbers and violation histories. Immediate access to this detailed, purposeful information ensures you have the right visibility much earlier in the underwriting stages – shrinking the time it takes to provide an accurate quote while at the same time mitigating the risk of future premium leakage.

It’s also important to note that your means of accessing the right data doesn’t require a huge added expense. It should be a cost-effective, frictionless solution if you’re leveraging the right resources.

Remove Friction

It’s common for applicants to exit the quote form when asked for a driver’s license number or details about their driving history. But having access to the right data allows you to eliminate multiple questions and even full steps from traditional applications. Removing this friction in the quote process is a huge leg up when it comes to providing an optimal customer experience.

And let’s not forget the friction underwriters experience on the backend. As you research to find the right solution that fits your needs, be sure to be on the lookout for tools with quick integrations that work with your existing workflows and elevate your current processes. Beyond improved efficiencies, you’ll likely uncover that these solutions give you back the time and manpower needed to quote more customers and expand your business at a quicker rate.

Put Your Customers First

By prioritizing the customer experience throughout the application and quote processes, insurers can convert digital customers at up to six times the rate of their peers. As you’ve learned, the answer to this isn’t shortening applications or buying massive data packages – it’s finding unique, cost-effective ways to access information you need earlier on, so you can price risk with confidence and build trust with your policyholders from the get-go.

Unlock Real-Time, Accurate Risk Assessments at Quote

It’s survival of the fittest out there for insurers. With SambaSafety, we give you the confidence and tools needed to offer quick, accurate and competitive quotes – so you can hit that “hole-in-one” at Rate Call 1.

To learn more about our alternative solution to large data packages that improves efficiencies while making an immediate impact on your bottom line, schedule a demo with one of our insurance software experts.