5 Problems Insurers Can Solve With Cleaner Data

Here are five operational scenarios that illustrate the value of high-quality data for insurers. For each we explain why there is value in data cleansing, whether that means fixing spelling errors in customer names, removing deceased individuals from datasets, identifying duplicate records or reconciling inconsistencies. 

Scenario #1: A communication is sent to deceased customers on your mailing list.

While businesses never intend to send communications to individuals who have passed away, this risk is unavoidable without proactive updates and maintenance of customer data. A lapse in updating death records in your database is not only upsetting for the family left behind but also opens the door to potential identity crime.

Criminals can use deceased records to fraudulently obtain credit or open new accounts. According to the Australian Institute of Criminology¹, almost one in three Australians have been a victim of identity crime, with 20% of respondents having their personal information misused in the past 12 months. With just a single piece of personal data, criminals can use it on its own or exploit other sources to construct false profiles or replica identities. 

The Australian Death Check by Equifax can help you guard against the reputational damage of indelicate communications. It verifies your customer data against Australia’s only official source of death data and helps you identify deceased individuals, including deceased accounts sitting in arrears or collections. 

Scenario #2: A refund needs to be processed but incomplete customer information hinders the process. 

It is important to ensure processes and systems are in place to prevent charging deceased customer accounts. Businesses sometimes depend on next-of-kin to notify them but that is not always timely. The liability and risk of continued charging of deceased estates can be mitigated by data cleansing and streamlining workflows. Additional benefits include the reduction of processing costs and resources, as well as timely processing of refunds in line with industry best practice.

Clean and up to date information like date of death will help insurers provide better customer service and efficient refunds or claims processing.  

Scenario #3: Your company experiences a data breach and needs to contact everyone whose personal information has been breached.

As data breaches become increasingly commonplace, prompt customer communication is crucial when a breach occurs. It’s not just your active database you must communicate with, but potentially thousands of lapsed customers or prospects. The efficiency and speed of your response can be the difference between containment and reputation-destroying headlines.

Clear and speedy communication can mitigate the reputational fallout of a breach, particularly in today’s fast-paced 24/7 news cycle, where any delays or communication missteps can result in loss of control over the narrative.

Recent data cleansing exercises have revealed an average of more than 5% match on deceased individuals, highlighting the need for up-to-date records. Refreshing your customer data is a good first step in preparing for a breach to prevent under or over resourcing. Establishing a regular cadence to validate customer data proactively reduces the attack landscape of data breaches, especially when coupled with timely account closures and purging personal information.

Scenario #4: A customer complains about data misuse.

Customers are increasingly aware of the need to protect their data and want more control and choice over the collection, disclosure and storage of their personal information. As the gatekeepers of this data, insurers are exposed to potential risk if they do not perform ongoing monitoring and maintenance to remain compliant with data protection and privacy regulatory standards.  

Data cleansing maintains accuracy and clarity in your data, enabling your business to answer questions like ‘Do I know whom I’m talking to?’ and ‘Have I used best endeavours to act in the interests of my customers?’.

Clean data strengthens your ‘Know Your Customer’ (KYC) processes where applicable and provides peace of mind when contacting customers. In a competitive landscape, building a culture of good data governance provides confidence and assurance that your company leads with integrity and is a trustworthy custodian of data.

Scenario #5: Your company merges with another, raising concerns about data duplication or inactive accounts.

Duplicate entries in datasets lead to inconsistencies, errors and inefficiencies. Data siloed across different systems causes confusion, as different teams may accidently reach out to the same customer. De-duplicating and cleaning your data enables a standardised view across all datasets, providing a single source of truth about your customers. This accurate data foundation supports analytics, predictive modelling and informed decision-making.

Migrating customer data between systems is on its own a huge undertaking, and one of the successful outcomes is having accurate and reliable data migrated across, whether it is as part of a merger or just internal customer data migration.

Talk to an Equifax insurance specialist today about developing a tailored data cleansing solution to address your data management challenges.

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