In our webinar, How to Improve Insurance Risk Calculations with Data Integration, our CEO & Founder, Aaron Shook, and Director of Strategic Services, Ron Reed, review the data interactions required to estimate risk, the pitfalls of a standard approach to calculating policy risk, and the strategic solution to keep your business profitable and competitive within the marketplace.
As carriers continue to pursue their digital transformation, addressing this problem is foundational to the success of those critical investments. Here’s a high-level overview of the scenario and the importance to long-term profitability.
The Legacy Approach to Accessing Third-Party Data is No Longer Viable
For most carriers, the policy management system is the center of their universe where all third-party data is plugged directly in via point-to-point integrations. However, this legacy integration approach for connecting data from vendors like CoreLogic, TigerRisk, and more directly into your policy management system is not scalable.
According to Aite-Novarica, more than 75 data providers serve insurers and that list continues to grow. Yes, you heard that right— 75.
What are some hidden business costs of the standard approach?
- Drastically increased project timelines and risk to enhance, modify, and/or swap third-party data services
- Larger underwriting labor cost
- Decreased agent satisfaction
- Increased outage times
- Higher total cost of ownership
Why make it more challenging and take longer to swap third-party data providers? Without the ability to quickly and seamlessly access the best data to power your risk calculation, the profitability of each policy is at risk.
How to Maximize Profitability: API-Led Integration Strategy
Operational support and flexibility are the core to any successful IT organization. So what’s the solution to help your insurance business maximize profitability and competitiveness in the marketplace? An API-led integration strategy.
By leveraging an API-led strategy:
- Underwriting can have a more trusted relationship with IT to enable new risk model capabilities with integrations that are faster and less risk to your business
- You control the access to third-party and internal data
- You have the ability to scale and consolidate your risk capabilities as you add new products and offerings- enabling the utmost flexibility in all areas of your business
Solving the Most Critical Data Problem for Insurance Carriers
Your third-party data and its application must not be locked into your policy management system. Risk assessment requires data and the ability to take control of that data as new providers become available and customers demand more personalized experiences. Our on-demand webinar, How to Improve Insurance Risk Calculations with Data Integration, dives into the challenges of this scenario , and how an API-led data integration strategy can help. If you have questions or want to discuss your integration challenges, contact us today.