2. The competition to attract and retain the best customers is fierce, particularly as customers become more sensitive to price and less loyal to their insurance companies. Carriers that are using modern predictive analytics are better able to analyze broader bases of data and identifying meaningful patterns. Since carriers have access to data from large customer populations, sharing insights based on that analysis with their agents can help them collectively target the best customers.

3. Carriers and agents can also expand their base of business with these customers by improving promotional programs tied to specific groups of risks. For instance, predictive modeling can help agents match the best offers for customers at each lifecycle stage, and better predict which product to promote at just the right time.

4. Using predictive analytics, agents and carriers can define better ways to target and attract specialized markets, such as small businesses in a particular niche. And for customers at risk of leaving, carriers and agents can work together through special service programs, outbound calling based on identified red flags, and other methods. Carriers, working in partnership with agents, can be alert to early warning signs and can intervene before a switch is made.

5. A big part of retaining and attracting the best risks is not just individualized treatment and cross-selling, but also competitive pricing. As the “last mile” to the client, agents need confidence that the price they are quoting is the best one, matched closely to the risk. Pricing based on credit scores and other traditional rating variables alone doesn’t always achieve that objective. Modern predictive analytics, on the other hand, takes much of the guesswork out of underwriting. Carriers are able to review a greater number of variables to determine which policies are likely to generate losses over time, enabling their distribution partners to sell with confidence knowing the price is matched correctly to the risk.

When agents understand the criteria that defines profitability for a particular carrier, and the carrier and agent meet to determine which risks to target, the partnership inherently grows stronger—and a strong relationship between carriers and their agents aids greatly in achieving sustainable growth.

Predictive analytics can be leveraged to give agents greater insight into customers. By arming agents with the best available tools to more easily and accurately build and grow their businesses, carriers can increase their bottom line, decrease churn rates and reduce risks, even in a soft market.