As technologies continue to evolve and consumer expectations change across industries, it’s important for businesses who want to be competitive to stay on top of relevant tech to improve and modernize their operations. The auto insurance industry, a sector that traditionally relied on antiquated, manual processes, is increasingly leaning on digitization to improve distribution of their products. In its ability to deliver instant access to consumer data, CPD provides the auto insurance industry with unique competitive advantages that include digital quoting, instant comparisons, and embedded insurance offerings.
What is consumer-permissioned data?
Consumer-permissioned data (CPD) is the ability for consumers to grant any business, such as an auto insurance or auto finance company, secure access to their data directly from primary sources (in this case an online insurance account).
Keeping up with insurance industry trends
In recent years, the insurance industry as a whole has been forced to move toward digital. In a report from Mckinsey, the driving force has not only been to be able to keep up with the advancement of other industries embracing technology, but also to meet consumer expectations. Relying on 1) providing a digital shopping experience for young consumers who start the buying process online, for example, or 2) automating processes via API, machine learning, etc. to cut costs and streamline operations will have a major impact on the success of legacy insurance businesses.
Embracing technology allows insurance businesses to both provide a positive consumer experience and to scale their business model profitably, further setting them up for success. For insurance businesses, integrating consumer-permissioned data is an easy first step to take toward going digital.
How CPD can increase digital auto insurance premium binding
For auto insurance providers, CPD means making more informed decisions about what coverage to offer prospects, pricing policies more accurately, and getting their products in front of the right prospects at the right time. For prospects, it means more accurate quotes for their desired insurance coverage and policies better suited to their needs. The ultimate goal is to drive more premium binding. Here’s how CPD helps:
Enhanced user experience for digital quoting
When it comes to digital quoting, CPD enables prospects to provide their current insurance details, instantly. The insurance provider can in turn use that data, which can include coverage, policy limits, deductibles, insured vehicle information, and more, to instantly serve up a competitive quote.
For example, instead of relying on back-and-forth phone calls or emails to understand a prospect’s coverage needs, agents can use CPD to collect the necessary details instantly. At MeasureOne, it looks like this:
- Agents send a link via text or email to a prospect with a request for the decs page
- The prospect clicks on the link and logs into their online insurance account (e.g. AllState) via the MeasureOne platform to connect their data in seconds
- The requesting agent then receives the consented decs page
Plus, the received data is structured using an API, which automates and organizes the data collection process, relying less on human processing speeds. This digitization allows agents and enterprises to bind more premiums with greater efficiency.
Instant comparison for new vs existing coverage
Auto insurance coverage isn’t always apples-to-apples and policies are filled with more than just the premium. Consumer-permissioned data can be used to gather the relevant comparable data from an existing policy so that agents can easily explain the added value that their coverage is bringing.
Consumers can then easily compare different policies with ease and determine which one offers better value for their money or is more suited to their individual needs, reducing confusion and frustration in the shopping process.
Fast-tracked embedded insurance
Consumer-permissioned data can be utilized in a variety of beneficial ways, for example–enabling instant data collection, quote delivery, and auto insurance bundling in limited steps from within any digital channel: on a website, in a digital application, and via email or text.
Using consumer-permissioned data to support embedded insurance is beneficial for businesses seeking to adopt tech-savvy processes and those that may want to streamline their operations. It also provides consumers with a seamless way to select and add their desired insurance coverage. With a simple CPD integration, companies can natively offer bundles and add-ons, seamlessly and without friction.
Your solution for auto insurance distribution with MeasureOne
In today's competitive insurance market, consumer-permissioned data provides auto insurance enterprises, lenders, and more with a distinct advantage over traditional methods of quoting and binding policies. Providing instant access to consumer data, CPD represents a new frontier in the auto insurance industry with greater digitization and personalization and ultimately, driving more premiums.
In addition to digital quoting, CPD with MeasureOne can also be leveraged for:
- Instant verifications: Any organization that requires individuals to provide proof of home or auto insurance can use our platform to complete this process instantly, reducing manual load, human error, and risk.
- Streamlined underwriting: Any data with associated credentials can be shared instantly, streamlining and bringing efficiency to existing underwriting processes. Additionally, CPD can make new data accessible, improving the effectiveness of the underwriting.
Want to learn more?
Watch our latest webinar where our Head of Insurance, Matt Donovan, shares how CPD will power the future of auto insurance distribution: