28 percent of insured U.S. adults ages 19 to 64, an estimated 41 million people, are under-insured (Commonwealth Fund Biennial Health Insurance Survey, 2016).
To solve this problem, we need to understand what is causing it. One of the most common reasons for this problem is that insurers are not always aware of changes in policyholder life events. Any change in policyholder status from marriage, divorce, birth of additional children to house move is likely to have an impact on the amount of insurance needed.
While insurers possess a massive amount of data about their policyholders, they often don’t have the tools to access it, and are therefore unable to use it to guide business decisions.
Atidot helps carriers ensure that their policyholders have the correct coverage by identifying pockets of untapped opportunities for up-sell.
Just think about the potential opportunity
Let’s take Jessica, Liz, Megan and Sarah, a group of college friends who all purchased the same life insurance policy around the same time. They will all experience multiple life events in the coming years and decades that warrant greater coverage.
Jessica, 30 year old and newly married, rents an apartment with her husband near Milwaukee, and holds an entry level position at a small company. It is likely that her salary will rise, she will have a child, and buy a home in a more affluent community.
Liz also got married recently, but she decided to stay in the city center. She worked in finance and made some successful investments over the years, but when one of her parents was diagnosed with cancer, she had to quit working and take care of them.
Sarah will inherit money from a relative, and Megan will get divorced before having kids.
It is easy to see how the same life insurance policy does not meet each of their needs today. Since they all bought the same life policy when they got married, you can easily see how it cannot fit all of their needs today.
More and more insurance companies understand the under-insurance issue and the great opportunity it represents for the industry. They realize that a significant percentage of their book of business is under-insured, but have no easy or timely way of knowing which of their policyholders fall into this under-insured category. They have masses of data, but are unable to access it or make sense of it, and therefore cannot use it to gain insights about their policyholders to ensure that their policies are up-to-date and accurate.
Know your customer
With this pain point at the top of many insurance companies’ agendas, there is significant excitement around Atidot’s insurtech solution that uses artificial intelligence (AI), machine learning (ML) and predictive analytics to help life insurers optimize profits within existing books of business.
What does this mean exactly? Well, Atidot actually augments customer data with public, open source information as well as its own proprietary data, and can predict insurance-specific behavior based on trends. The solution enables insurance companies to know their customers better – and to know precisely which of them is potentially under-insured.
That’s not all…
Atidot works very closely with carriers to ensure that the solution is tailored to each carrier’s needs. Qualified leads are generated based on the company’s business plan and distribution channels to ensure that the under-insurance leads that they are looking for are from the right target group.
The system can also group the leads as per the carrier’s request. For example, we can provide each carrier with different lists of leads depending on their level of under-insurance, geography, distributor or any other factor along with their likelihood to convert (high, medium, low).
The system also attaches trigger information to each lead to give the producer a hook for a conversation with the policyholder. For example, a salesperson would be provided with a reason why the lead had been chosen, be it house move, change in marital status, policy conversion points, preferred products, etc, which helps to focus the call and provide the right bundle of insurance.
Precision pays off
With Atidot’s technology, insurance companies can predict policyholders’ behavior and can offer policy adjustments accordingly in order to ensure that they are receiving the proper coverage.
Being able to know precisely who among your policyholders is a likely candidate for under-insurance is a huge game changer for insurance companies who for generations have been drowning in their data and unable to leverage it to guide business decisions.
With over 41 million under-insured Americans out there today, the opportunity to grow the business is immense. Insurance companies just need the right tool to be able to reach it.