Nick Houghton on dynamic data

Dynamic pricing is the new black. The ability to gather dynamic information to better price a risk is the way insurers want to improve profitability of markets such as motor.

This is the opportunity independent brokers have been waiting for. They know their customers like nobody else, and this is exactly what dynamic pricing is about – how loyal are they as a customer? What is their attitude to risk? The broker knows best!

Aggregators and the direct writers cannot get their hands on this valuable information ­ because they do not have the relationships independent brokers have. As insurers build new question sets into their rating engines, this is independent brokers’ chance to shine and gain a competitive edge over rivals.

I hope brokers can realise the value of their face-to-face customer relationships as insurers start to build ‘dynamic’ databases of risk information. This information is already at brokers’ fingertips.

Nick Houghton is managing director of Broker Network.