The Insurance Market Rebounds: How AI-Predictive Analytics Are Shaping Lead Buying in 2024
“No one anticipated how ferociously the market would come back,” according to the VP we spoke to at one of the largest online sources of insurance policies in the US.
A look at what’s changing in insurance lead buying as we start the second half of 2024
The year over year double digit rate increases continue, and we’re experiencing the highest ever level of insurance shopping – over half of US consumers are reported as actively in the market shopping their insurance. (JD Powers)
2023 was a significant slow down in lead acquisition and reduced appetite to grow. But here we are, July 2024, and the insurance industry has exploded back to life. Carriers are back in a big way buying leads, most notably led by Progressive and Allstate, which have reported a substantial rise in lead acquisition activities. Intense competition has resumed and strategic insurance providers are making moves to adapt to the evolving market dynamics.
However, many companies reduced their staff levels 25-50% to better weather the challenges of a slow 2023, and now they find themselves conducting twice the level of business with reduced staff. Hiring the right people and onboarding takes time, and operations are stressed and seeking ways to accelerate throughput and efficiency.
Some of the critical challenges of today’s insurance marketplace can be addressed with the latest smart tools and innovative use of data and insight. The rise of AI-predictive analytics and data are solving a crucial problem of bringing early risk assessment to lead buying and insurance sales.
Real-time, AI-predictive scoring services are playing a crucial role in our clients’ success. Our machine learning platform is not just about insights—it’s the key to injecting actionable, data-driven recommendations that improve conversion, increase efficiencies, and drive profitability across the entire insurance customer lifecycle.
How are insurance producers and intermediaries using AI-predictive analytics for early funnel impact?
By leveraging data insights, insurance companies can better segment and prioritize actions across the entire customer lifecycle. We have seen a tremendous focus on early risk assessment, for early funnel management of leads, to increase conversion by several percentage points, allow for more bundling, increase retention, and drive profitable growth.
Agency Channels
Med-to-large agencies are leveraging AI to optimize lead management and prioritization. A single API call can retrieve their uniquely configured Fenris Applicant Score, predicting the value of that lead, in real time, allowing agents to focus on high-priority prospects.
Carriers’ Direct Channels
Designing for the best outcomes in high velocity environments is more successful when aided by real-time identification of patterns and preferences and employing machine learning to tailor offerings, improve engagement, and cross-sell.
Raters and Management System Providers
As a pre-integrated feature within several Agency Management Systems (AMS) and comparative raters, Fenris enables real-time risk matching and follow-on prefill for auto, home, and small commercial lines of business, which saves time and effort to get to an accurate quote.
Platform and Marketplace Players
Platform and marketplace players are integral to the insurance space, facilitating seamless interactions between carriers and distribution partners. Fenris’ AI Insights enhance these platforms by improving scalability with accurate and timely information, users can make more informed decisions, thereby streamlining operations and boosting the platform’s value proposition to carriers.
Navigating for 2025 and beyond…
The benefits of AI-predictive analytics in the distribution and pre-underwriting stages brings a wealth of improvements, not previously realized. According to recent reports, companies utilizing AI have seen up to a 40% increase in operational efficiency and a significant reduction in costs, reinforcing the transformative impact of these technologies (ExO Insight). As the insurance industry continues to evolve, the question remains: How will you harness AI to stay ahead of the curve and drive future growth? To learn more about how Fenris can help you leverage AI for your business, visit our website.
