What We Learned at LOMA's 2016 Customer Service Conference
March 07, 2016 by Lauren Yildirim
Last week, the Captricity team traveled to LOMA's 2016 Customer Service Conference in Austin. Not only did we meet and mingle with the best and the brightest thought leaders in the world of insurance, but we also learned about some of the biggest service challenges top life insurers are facing and how they plan to tackle them.
Our biggest takeaway from the conference? Poor data quality is costing insurers time, money AND customers.
Many insurers are unaware that poor-quality customer data could be costing them millions of dollars in administration and rework costs. Customer retention is also a major issue many insurance companies face in the battle against poor data quality. Melissa Scott, Product Solution Specialist (Life Insurance) at LexisNexis Risk Solutions, delivered shocking statistics based on a recently published data quality study that detailed the true cost of poor data hygiene on customer service teams in insurance.
Here's some of the points from an analysis of 2.6 million identity transactions:
- 657,092 IDs were linked to three or more social security numbers
- 77,458 IDs were using a social security number belonging to a different name or address
- Over 46,000 IDs were using a social security number that belonged to a deceased person
Another study driven by LexisNexis on the impact of return mail to insurance businesses found that 17 to 20 percent of booked policies have address problems severe enough to prevent mail from delivery. Insurers pay a tremendous amount of hidden costs, including the cost of postage, paper and duplicate work, to correct address errors. But the largest cost associated with data error is the cost of losing customers.
Additionally, these staggering inaccuracies result in data that’s unreliable, preventing the rest of an organization from functioning effectively. The ability to share data across an organization, whether to drive operational efficiency or sell more products to existing customers, becomes nearly impossible when customer data quality can't be trusted.
Poor data quality is creating a customer experience that’s frustrating and inconvenient. In 2016, insurers must get laser-focused on finding innovative ways to solve their data quality issues as a way to increase efficiency, save money and keep a tight hold on their most important asset -- their customers.
Customer data is the lifeblood of every modern insurance organization. In order to function efficiently, these data-driven businesses require high-quality, credible data that can be trusted across every line of business. Watch this video and learn how data empowers the modern insurer.