Challenges and opportunities for the insurance sector

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More accurate risk assessment
Usage-based insurance allows for a more accurate risk assessment because it is based on data collected and interpreted in real time. The incremental knowledge of customer habits is in fact fundamental in constantly updating risk profiles , developing proposals for services and products in a cross-selling and upselling perspective and establishing a relationship based on mutual listening and trust . By collecting data on how customers use a good or service, insurers are able to better understand the behavior of their insured, promptly review their initial assessments and possibly modify premiums and coverage.

Each of these three capabilities – versatility, efficiency, better decision-making – contributes honduras whatsapp resource to the creation of a quality customer experience . But what are the objectives that a UBI program should achieve to guarantee the benefits we have discussed so far? And how do these advantages translate into an increase in the value generated by the company and perceived by the insured? Let's try to delve deeper.






The Goals of a Usage-Based Insurance Program That Works
In general, a UBI program works if it manages to achieve two macro objectives:

obtain increasingly accurate data ;
provide value-added features.
Sharing constantly updated behavioral and contextual data enables the creation of features that increase policyholder engagement and loyalty. The perceived quality of the experience improves, with direct impacts on the productivity and profitability of the entire organization.