Property/casualty insurers, whether they know it or not, are well-schooled in behavioral economics.
Executive Summary
In this introductory article of a three-part series, Andy Clapson, Data Science Lead of Slice Labs, presents behavioral science as a discipline that the best insurance agents and carriers are already practicing. The challenge is to harness what they know—and what behavioral scientists teach—and to scale it across the enterprise.We used to intuitively understand business success was about customer relationships and driving a desired behavior based on a trust built up over time. We just had no way of turning those engagements into data to analyze and leverage.
Before the dawn of modern technology, there was a significant amount of relationship building and interaction at the independent insurance agent level. This helped carriers understand how to adjust policy coverage to meet customer expectations. Agents also protected carriers from claims risk based on how the insurance distribution channel analyzed and reported on customer behavior. It’s how an agent could get an edge.
