How Incorrect Mortality Data Could Have Cost One Insurer Millions
A recent trial carried out by MiExact showed that one insurance firm was incorrectly suppressing up to 66% of potential clients with inaccurate mortality data
The Challenge
An insurance company recently discovered that inaccurate mortality data was leading to missed opportunities. Their existing supplier was mistakenly flagging living individuals as deceased during the quote process, preventing them from becoming customers.
Concerned about the impact of over-suppression, the insurer sought a review of their data accuracy. A trial was conducted on over 20,000 cases previously flagged as deceased.
The Findings
Analysis revealed that only 34% of the flagged individuals were actually deceased, meaning 66% were incorrectly excluded.
The Impact
Based on 2024 insurance pricing data, this level of inaccuracy could result in potential losses ranging from £1.9 million to £12 million annually*.
The Outcome
By using verified mortality data, the insurer has reduced unnecessary exclusions and improved the accuracy of its customer acquisition process. This case highlights the importance of robust data management in preventing lost business opportunities.
Ensuring access to accurate, up-to-date mortality data is essential for insurers looking to reduce errors and improve decision-making. MiExact provides verified mortality data to help businesses avoid unnecessary exclusions and optimise customer engagement. Get in touch to learn more.
(*Source: iaminsured.co.uk – average home insurance cost: £150-£199 per year; confused.com – average car insurance cost: £941 per year. These figures reflect total potential loss before considering lead conversion rates.)