Your Policyholders Could Be Significantly Under-Insured. What Can You Do About It?

Your Policyholders Could Be Significantly Under-Insured. What Can You Do About It?

by: Dror Katzav, Data Science Team Lead

November 10th, 2022

21.3 percent of insured U.S. adults ages 19 to 64 are under-insured (Commonwealth Fund Biennial Health Insurance Survey, 2020).


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 changes in the lives of their policyholders. Any change in policyholder status from marriage, to divorce, to the birth of additional children 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


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 underinsured but have no easy or timely way of knowing which of their policyholders fall into this underinsured 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


Since this issue haunts many insurance companies, 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 underinsured.



That’s not all…


Atidot works 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 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).


A salesperson would be provided with a reason why the lead had been chosen, be it a 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 that for generations have been drowning in their data and unable to leverage it to guide business decisions.


With millions of underinsured 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.