If you’re an insurance broker looking to gain more accurate insights, forecasting revenue growth can be at the top of your agenda. Not only will forecasting growth allow you to plan ahead for the future, you’ll be able to offer a better service to your customers if you can grow in a sustainable and predictable way.
With the UK Insurance Brokerage market expected to surpass $19.9 billion by 2024, take a look at how insurance brokers can forecast this growth to make the most of their opportunities.
1. Use real-time data
Using real-time data to analyse how your customers are behaving is a crucial part of being able to predict future revenue. With a stand out data analytics platform that is tailored to your business, you’ll be able to upload your insurance data or connect to an existing system for instant analysis.
By inputting business assumptions such as rate changes or new exclusions, with the addition of real-time customer data, you’ll be able to produce highly accurate forecasts.
2. Look at historic analysis
Looking at historic analysis with the help of an insurance software provider will enable you to predict the pattern of growth. This could help you predict growth per area of business, or per month or seasonal period, but whatever the case it will allow you to make informed assumptions about how your business usually performs.
Insurance brokers should also be looking at advanced reporting on their historical data which gives them information on commission breakdowns & profit shares, claims overview and claims loss triangles. This kind of data should be presented coherently with quick export and share options that allow different areas of the business to benefit from the information.
3. Look at expenditure
When it comes to revenue growth, it’s about expenses too. With insurance, expenses can really change your predictions so having a forecasting programme in place that takes into account associated risks is key.
To forecast revenue growth effectively, insurance brokers should be running assumption scenarios to understand the impact of varying factors and how these might affect business. It is also beneficial to assess the possible outcomes for rate and exclusions changes that could affect future forecasts.
4. Assess how risky the business is
Risk appetite can contribute to how accurate reporting and forecasting can be. If the businesses appetite for risk is high, then you may find that forecasting is a bit more unpredictable.
To combat this, forecasting for revenue growth should take into account risks and create multiple forecast scenarios based on how risky you see business being. Using historical and real time data, insurance brokers should be able to create more accurate forecasts when they take risk into account.
How can Lucid UX Help?
Lucid UX assists insurance brokers with the automation and refinement of forecasting. With Al governed claims analysis and ratio monitoring to keep premium rating competitive but profitable, Lucid UX helps you price your product correctly and make intelligent business decisions.
Lucid UX’s offering also includes expansive MI & Reporting, high level support and constant evolution which ensures that brokers are able to forecast revenue accurately.
For more information, take a look at how we helped triple a broker’s income and slash technology costs in our recent article.
