Integrating Systems to Improve Businesses Classification

Data Integration for Improved Insurance Risk Classification

At the heart of an insurance agent’s role lies the responsibility to source clients, build lasting relationships with those clients, and offer them insurance products that will best cover the risks faced in their day to day lives. The clients that agents deal with need proper and tailor-made advice when it comes to choosing the right insurance products – it is not a one size fits all approach. Insurance coverage comes in many shapes and forms to cover a variety of different risks and needs. There are various factors that determine what coverage a client will need, and that will depend on several factors one of which includes NAICS codes.

How can NAICS Codes be Used to Improve the Customer Experience?

As an agent, one of the keys to staying active and profitable in the insurance industry is investing in the customer experience. Providing your customers with a comprehensive, personalized experience will help agents to add more clients to their books, increase policy renewal, and boost cross-selling and upselling opportunities. By placing an emphasis on improving NAICS code identification, and an emphasis on which carriers best service which NAICS codes, agents will know more about the clients they serve empowering them to provide an exceptional customer experience. It is through well-informed interactions with an agent that clients choose to continue using their expertise, even as their coverage needs change.

Challenges Surrounding NAICS Code Identifications

The Consumer Federation of America estimates that up to 60% of businesses may be misclassified. This complexity makes it easy for agents to accidentally misclassify their clients’ businesses. Agents who sell their clients the incorrect coverage place them at risk as they could experience gaps in protection in the event of a claim. Such errors can lead to unhappy clients, loss of business, and E&O claims.

Insurance agents can spend up to 30 minutes to an hour per policy, manually combing through different siloed systems trying to find the relevant data needed to assign the correct NAICS code to a client’s business. To avoid these situations, agents are now leveraging data integration and automation tools to enhance industry detection - helping them accelerate the NAICS code identification process.

Synatic’s Nimble, Simple, and Powerful data automation platform will enable agents to integrate and automate key data processes for increased efficiency and improved data visibility. Using Synatic, agents can verify small businesses and use that data to drive crucial insurance decisions. By combining Synatic’s ability to Verify, Integrate and Orchestrate data with InsurTech solutions like Relativity6 that use AI technology to identify NAICS codes, agents can serve their clients with greater accuracy and speed.

Synatic enables Relativity6’s AI technology to pull data together, push it out to the right system, and operationalize that data for other core point systems, such as HubSpot, AMS360, Applied Epic, Salesforce, Sagitta, HawkSoft, and more.

How can Synatic Revolutionize the Way Agents Do Business?

As mentioned earlier, clients want to engage with agents who are well-informed and know about the industry their business operates in. This provides the client with the peace of mind that the advice and recommendations are tailored to the unique requirements of the individual business.  

In most cases, agents can repeat business success by identifying trends amongst clients within a specific industry class. This involves:

  1. Consolidating data in the Synatic Data Warehouse, on all the clients in their book including their NAICS codes. This empowers agencies to have the right data at their fingertips
  2. Identifying which carrier and industry class combinations are occurring most frequently and successfully
  3. Recommend that clients with the same NAICS code take up that insurance base on previous business success
  4. Recognizing which industry classes have other additional lines of business insurance, and offer the same additional insurance options to similar clients

Agents need unlimited access to a plethora of data across their insurance systems in order to build reports that provide insight into industry trends. Building these reports without the right tools involves countless hours of arduous manual work as client data is usually trapped in siloed systems. This makes it extremely difficult to bring data together and form cohesive strategies that help repeat business success.

Synatic uses its built-in data warehouse to create a centralized repository of all relevant data such as NAICS codes, policy data, ACORD forms, and data from external sources. The platform can then deduplicate and clean data before pushing the wealth of information both back into the agency’s chosen AMS and into a BI/AI tool to automate reporting, saving agents time and resources. This automated reporting and integration process provides agents with a complete picture of possible industry trends as well as the full spectrum of their client’s requirements, ensuring they can deliver superior service, at every engagement.  

For insurance agencies, especially traditional ones competing against more agile InsurTech firms, ensuring outstanding customer service from the very first engagement across all possible channels can be a game changer. Improved NAICS code identification and the automation of manual processes create faster, more efficient agencies with happier clients, better-performing agents, and higher profit margins. To learn more about how you can automate your data so that it works for you, contact Synatic today.

Andile Khumalo
February 2, 2023
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