3 key ways data enrichment helps brokers deliver profitable business

The nature of insurer-broker partnerships has flipped drastically in what seems like no time at all. Large partnership rosters have been reduced beyond recognition.

Many insurers now work with just one or two brokers compared to hundreds. Insurers also demand far more proof that the brokers they partner with can deliver consistently low-risk, high-profit business.

It's an increasingly selective market where only the highest-performing brokers will win. But one key strategy will help brokers prove their credentials, deliver the most profitable business, and stay competitive: using syndicated data enrichment for fraud screening and risk placement.

Let's explore three powerful data enrichment benefits that will ensure you're a broker insurers choose time and again.

• Benefit #1: Accurate risk placement ⇒
• Benefit #2: Securing customer confidence ⇒
• Benefit #3: Preventing mismatched assessments ⇒

Benefit 1: Accurate risk placement 

Syndicated data enrichment helps brokers connect the dots when assessing risk. With access to detailed, high-quality data, you can really focus on an individual, digging deep into policy and claims patterns, and other potential fraud signals.

This means you can place risk with far greater accuracy and treat policy-seekers fairly - on individual merit rather than vague profiles. Both factors are essential to underwriting profitable and sustainable business for insurance partners.

Reference data typically includes National SIRA, which can be further enriched with third-party data services such as the Claims and Underwriting Exchange Register (CUE), Insurance Fraud Register (IFR) and other relevant identity and financial product information.

Take a car insurance request, for example...

With syndicated data enrichment, a broker could uncover a pattern of multiple policies or claims with linked details, spread across several insurers. Scenarios like this may indicate an industry wide fraud ring – such as a ghost broking operation – that typically pass under the radar.

By identifying this elevated fraud risk, this broker can either decline the application or set a premium that truly reflects the risk involved. Insurer-broker relationships are protected, and profitability is boosted.

Benefit 2: Securing consumer confidence 

The longest-lasting business partnerships all share one thing: they're built on trust. And data enrichment is just about the best way to maintain insurer confidence.

This is because it answers the big question that all brokers are asked: "What are you doing to not lose us money?". Syndicated data enrichment is a powerful, evidence-based answer.

In filtering out high-risk individuals and delivering only well-assessed business, you prove to insurance partners that you take fraud – and profitability – seriously.

Picture an insurer reviewing a broker's portfolio of clients...

Through referencing syndicated fraud data, this broker can confidently highlight that risk has been thoroughly vetted, and against the same sources trusted by the insurers they sell to.

The result? Insurers can proceed with faith that business won't go bad, while brokers maintain a favoured position amongst increasingly tight competition.

Benefit 3: Preventing mismatched assessments 

Syndicated data enrichment is part of UK insurer culture. 80% of the industry's biggest players use National SIRA – Synectics' risk intelligence syndicate – to detect fraud and guide risk placement.

In some cases, an insurer may screen business from brokers against National SIRA. Should a broker deem an individual low risk, only for an insurer's screening to find quite the opposite, the outcome would be embarrassing at best and partnership damaging at worst.

On the other hand, even if an insurer does not check broker business, fraud ends up on an insurer’s books anyway. Aligning data enrichment sources and risk assessments keeps your broker abreast of critical information while shielding your relationship with insurer clients.

Consider a broker working on a home insurance policy...

On the surface, an applicant seems unremarkable. But had this broker used syndicated data enrichment, they would have uncovered a history of previously cancelled policies.

Although this broker missed a major fraud red flag, their insurer client did not. Being out of sync on a serious issue is certainly cause for concern.

Synectics is a leading provider of data enrichment services to brokers. 8 out of 10 of the UK's top insurers trust our National SIRA risk syndicate, which is unmatched in its breadth and depth.

By using our market-leading insights, brokers can more accurately assess risk, prevent fraud, and align their decisions with the same data insurers use. For help with your risk placement strategy, contact a Synectics expert at info@synectics-solutions.com.