Incentivising for insurance change
Combied by Insurance24
HARARE, Combining the intelligent management of data with behavioural economics can assist insurers in providing customers with more sustainable solutions, says Kelly Preston, data analytics manager at SilverBridge.
Merely having access to data is no longer good enough to be competitive in the insurance market. The data must be combined with meaningful analysis to enable better insights into what the customer wants.
However, people are creatures of habit and need an incentive to change. Despite how consumers have become less brand-loyal due to an increasing variety of product choices in the market, there are many who feel comfortable in maintaining the status quo. Even if an insurer provides such an individual with a completely customised solution, the likelihood that the customer will favour it over an existing policy is minimal.
Fortunately, behavioural economics can be combined with data analysis to unlock the potential that exists in providing customers with bespoke offerings. Already, there are insurers who incentivise policy-holders to perform health-related activities. Enhanced benefits, reduced premiums, and other value-adds are offered to ensure that people become more responsive to the reality of change being the new status quo.
Tailored services
Combining all these elements empowers the insurer to take its business to the next level with tailored solutions catering for a range of customers. As mentioned in a previous article, the generic segmented way of developing insurance solutions is becoming less pervasive. Today, people expect better service, tailored offerings, and rewards for not only their behaviour but also their willingness to remain at an insurer.
Gaining a deeper understanding of data is vital to accomplish this. An insurer needs to make sense of the vast amount of data at their disposal. Irrespective of whether it is structured or unstructured, data must be analysed more effectively to draw better conclusions. In this regard, behavioural economics provides a much-needed impetus to affect this change.
Intelligent data management is the next evolution of what an insurer needs to do as the means to differentiate its offering in a cluttered market. Combining the skills of data analysts, scientists, and others inside the organisation will help drive this. However, more than this is needed.
Understanding behaviour
Returning to business principles and utilising modern data analysis creates a more conducive environment for understanding behaviour. Too often, organisations succumb to the temptation of adopting the ‘latest and greatest’ technology innovations with little thought given to how it integrates into existing processes and practices.
As such, behavioural economics becomes an important tool to accomplish this. It gives insurers an accurate way to enhance its data and deliver a better customer experience. All told, this provides the required platform for true insurance differentiation. Silver bridge Blog
Marsh acquires one of the largest independent insurance brokers in Texas
By Insurance24
HARARE, It seems there’s no end to deal-making in the insurance sector lately. Today, global insurance brokerage Marshannounced that it has reached an agreement to acquire Wortham Insurance, a Houston-based independent insurance brokerage firm. The transaction is expected to close in the third quarter of 2018, and terms were not disclosed.
Once the acquisition becomes official, Marsh’s footprint will grow larger in the Lone Star State as it enters the Austin and Fort Worth markets, and will merge its existing operations in Dallas, Houston, San Antonio, New Orleans and Tulsa with Wortham.
Richard M. Blades, currently the chairman of Wortham, will now be the CEO of the combined business, Marsh Wortham, and will also serve as chairman of Marsh’s energy and power practice in the US. He’ll report to Martin South, president of Marsh’s US and Canada division.
“Marsh and Wortham are very similar in terms of our approach to business, ability to form deep client relationships, and our values,” commented South in a press release. “The combination of our firms in this vital US region will deliver greater value to clients, colleagues and prospects through an enhanced value proposition, strong risk expertise particularly in the energy sector, and unparalleled client focus and service.”
Wortham’s history dates back to 1915 and it now counts more than 530 staff on its team in offices across Texas. P&C insurance, surety, personal lines, and employee benefits advice and solutions are all in Wortham’s wheelhouse, though the company has specific expertise in the energy, power, construction, and retail sectors.
“Wortham Insurance is an outstanding firm with a reputation for creating lasting client relationships and deep risk expertise,” said John Doyle, president and CEO of Marsh. “Together with Wortham’s well-respected management team and colleagues, we will deliver market-leading risk and insurance solutions to businesses and individuals.”
The new CEO of the combined business likewise sees the acquisition as “great news” for its customers and team.
“Wortham’s clients will continue to work with their existing service team including having the flexibility to utilize their existing international brokers while gaining the benefit of access to the wide range of global capabilities and product offerings of Marsh,” said Blades.
“Clients and colleagues will benefit from Marsh’s commitment to helping clients anticipate and meet the challenges of changing times and technologies. I look forward to leading Marsh Wortham with an entrepreneurial spirit in providing outstanding local service, while bringing our collective world-class expertise to businesses and individuals across the region.”
