Onboarding in Insurance: An Opportunity to Build Competitive Advantage with Red Flag Alert

Mark Halstead Compliance

The insurance market is increasingly competitive, with customers constantly on the lookout for a better deal and improved service.   

In this environment every possible advantage is critical – a key differentiator we’re going to look at in this article is onboarding because an efficient onboarding process has huge benefits. 

That’s a lot to get right in a first encounter with a customer, but with the right systems and processes in place, onboarding can become quick, easy and pain-free for both you and your customers. 

Three key issues to consider during onboarding are: the financial health of your customer, ensuring that your process is fully compliant with relevant legislation, and making a good first impression leading to positive, lasting customer relationships. 

Let’s take a look at these three key issues in more detail, and show how Red Flag Alert can help with all of them. 

Risk 

Onboarding new customers can be challenging, especially if the volumes are large. It means making a large number of creditworthiness decisions, which can lead to mistakes and longer processing times. 

While you want to avoid long due diligence processes and leaving imprints on customers’ credit files, making rushed credit check decisions can be very costly for your business. 

It’s a balance between mitigating risk and delivering fast onboarding. 

Red Flag Alert can help you to instantly ascertain the financial health of a business, which means you can decide whether they’ll pass credit control or not. Our unique flag system means that you can quickly accept or reject clear-cut cases, giving you more time to look into borderline customers using rich and detailed data. 

For insurers, you can then decide what, if any, credit limit to give, which policy is right for your customers, and the level of risk of default. For brokers, it can also help you choose which insurer is the best fit. 

Red Flag Alert’s data can also be integrated into your system, so that you’re instantly updated if anything changes. All of this means you can take credit control into your own hands in a timely and accurate manner, mitigating risk on an ongoing basis. 

Compliance 

As an insurer, you have to make sure you remain compliant with all anti-money laundering (AML) regulations, as well as with GDPR. This is particularly important during onboarding, when you need to perform adequate Know Your Client (KYC) and credit checks. 

Effective from January 2020, the Fifth AML directive (AML5D) applies to any insurer offering insurance products with cash values or investment features, such as annuity contracts or life insurance policies. This legislation brings with it a fairly large compliance burden, especially for larger insurers, and tougher penalties for non-compliance. Brokers are also affected, and can be held accountable if clients are found to be involved with irregular activity or if the correct procedures aren’t in place or followed. 

Luckily, Red Flag Alert offers a comprehensive AML service for insurers that covers everything from ID verification to secure audit trails.

Insurance is a data-driven business, and that often includes personal data, so being compliant with GDPR is also important. Again, Red Flag Alert will help you to adhere to the legislation because having a clear master data management (MDM) process means you’ll be able to track and manage your data to enable compliance.

Relationships

Ensuring you get both risk and compliance right can take time – and any delay can negatively affect your customer’s first experience and, therefore, your longer-term relationship. But Red Flag Alert’s services can help speed up your onboarding process, so your customer relationships won’t suffer.

In fact, that’s where your onboarding process can become a competitive advantage. By using Red Flag Alert’s comprehensive dataset and AML service, you can be ahead of your competitors in terms of fast, accurate and efficient onboarding. 

You’ll also have peace of mind that you’re making the best credit control decisions for your business based on the most up-to-date information, and that you’re fully compliant with AML and GDPR legislation. 

This is now important more than ever as customers can shop around at the click of a button and expectations of instant service grow every day. By providing high-quality, fast onboarding you’ll be laying the foundations for positive, lasting customer relationships. 

Your customers will also be more likely to recommend your services to others – and despite the growth in automated searches and comparisons, the value of word-of-mouth sales should never be underestimated. 

The Ultimate Onboarding Solution 

For all of these reasons and more, Red Flag Alert offers the perfect onboarding solution for insurers and brokers. The Red Flag Alert dataset offers high-quality, accurate information on the financial health of potential customers, acting as both an important credit control and business development tool that’s fully GDPR compliant. Our AML services can significantly ease your regulatory burden. 

All of this is provided with one flat rate that includes all support, and bespoke configuration for seamless integration into your systems. 

Our detailed business information offers: 

  • Up-to-date information on over 6.5 million businesses in the UK
  • 50,000+ new businesses every month
  • 100,000+ updates every day
  • Over 20 million key decision-makers
  • Over 100 data points on every business
  • 7 financial health ratings

Our AML service offers: 

  • Full range of risk level checking
  • Unbeatable match rates
  • ID verification
  • Enhanced due diligence
  • Sanctions and PEPs real-time screening
  • Monitoring alerts
  • Simple interface
  • Secure audit trail

To find out how you can start using Red Flag Alert for your onboarding process, get in touch with Richard West on Richard.west@redflagalert.com or 0344 412 6699.

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Mark Halstead Mark Halstead Partner

Mark's experience is big data analytics, financial services and building businesses provides Red Flag Alert with strategic direction.

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