Data Quality is Key to Agency Portal Performance

A relatively small investment in data quality can make a big difference in helping insurers get more out of their agent portals than they put in.

Addresses entered in a self-service environment often are the worst files in an insurer's database. Agents eager to process rate quotes mistakenly submit inaccurate addresses, causing myriad problems down the line. By integrating address verification into an agent portal, insurance carriers can make sure that each new address collected is accurate before producing a policy. Accurate addresses improve companywide operations in five different ways:

1. Accurate Rate Quoting

Premium calculation processes vary, but most insurers require addresses for geographic location, background and credit check information. These checks, however, are only as accurate as the address data provided. Correct address information provides as much as a 5 percent higher hit rate, resulting in more accurate information for decisioning.

For example, an agent quotes a rate for 1040 Main Street without realizing that there is a North Main and South Main. That policy could be issued for a location that doesn't exist (1040 Main St.) or for the wrong location (North rather than South). Having the correct address at the beginning of this process would result in more accurate, more efficient rate quoting.

2. Greater Agent Portal Usability

Non-interactive address checks often trigger holds on quote requests. By simply accepting or rejecting an address, agents are not sure what is wrong when a quote is not issued. Ultimately the quote request is put on hold and the agent must call support or underwriting. This situation frustrates agents and could lead them to issue another insurer's policies. An interactive, front-end verification tool prompts the agent to fix erroneous or missing address elements before submission, preventing additional phone calls and processing delays.

3. Improved Customer Experience

While insurers are increasing their use of e-mail communication, the industry continues to rely heavily on postal mail. Inaccurate address files prevent receipt of statements, renewal notices and claim checks. Even with batch cleansing, on average 2.5 percent to 5 percent of postal communications remain undeliverable. Improved document delivery allows insurers to meet customer expectations and create stronger customer relationships.

4. Reduced Operating Costs

Inaccurate addresses result in numerous downstream inefficiencies, such as wasted postage and printing or employee time spent correcting and resending mail. If addresses are verified up-front, budgetary dollars and valuable employee time can be saved, benefiting the entire organization.

5. Better Data for Claims and Policy Management

Claims and policy management rely on agent portal data. Inaccurate data captured through portals leads to interdepartmental frustration and disruption in business operations. Wrong address data being used for claims correspondence will certainly cause processing delays, affecting customer service.

Empowering Agents

Implementing interactive address verification delivers significant benefits to departments across an insurance organization. Empowering agents to verify customer addresses upon entry enables insurers to offer more-accurate quotes, improve policy administration, save costs on customer communication and develop customer loyalty.

The purpose of the agent portal is to allow efficient, automated service to customers and agents. Ultimately, a relatively small investment in data quality makes a large impact on portal usability and efficiency, allowing insurers to get more out of their portals than they put into them.