In an era when insurers are increasingly reliant on data to automate underwriting and segment risk, lower new business application conversion has put pressure on company expense ratios. This is due to increased online and comparative rate quoting. Consequently, insurers are looking for ways to optimize the return on third-party data without significantly increasing costs. Executive SummaryOpinion: TransUnion’s Director of Insurance Products suggests three ways insurers can get more out of credit data.
Credit data is one of the most commonly ordered pieces of information for personal lines of insurance. It is vital for insurers to look for ways to beat the competition by gaining every possible insight out of the data purchased. As such, here are three ways insurers can get more out of credit data: targeting higher-margin business, increasing conversion and improving retention.