Insurance companies lose almost £200 million because of outdated data

Postcode Anywhere opens it office to New CollegeWorcester, UK – 26 November 2013 – Research released today reveals that insurance companies are missing out on more than £170 million UK sales opportunities each year because of outdated housing data. Furthermore, companies are refusing to provide insurance quotes to consumers moving into newly built homes due to new postcodes not being uploaded to insurance databases.

Postcode Anywhere, a leading provider of international address management software that conducted the research, revealed that despite organisations increasingly tackling data quality with address validation software, very few are capitalising on daily updates and ‘Not Yet Built’ addresses.

The ‘Not Yet Built’ database contains information from Local Authorities on properties that are in planning or construction stage. This information is held separately from the Royal Mail’s Postcode Address File (PAF), the most up-to-date address database in the UK. Today, there are over 350,000 addresses in this additional database. By failing to take advantage of the ‘Not Yet Built’ data and daily updates to databases, insurance companies are operating on out of date information, turning thousands of potential customers away. 

The research showed that, in the last year, 219,690 new addresses were added to the PAF database; this equates to over 700 new addresses each day. With the average combined cost for home and car insurance at £788 per annum, companies are missing out on approximately £173,115,720 of consumer business each year, as well as suffering harmful brand damage as customers who meet the necessary criteria are inexplicably turned away. 

Redditch resident, Neil Stone,  moved into his new home in April, but says he could not get home insurance until the very last minute because insurers would not recognise his new postcode:

“Our postcode just wasn’t showing up on any of the insurance companies’ systems. Without a valid postcode we just couldn’t get insurance for our new home and without home insurance we couldn’t complete the mortgage process.”

Guy Mucklow, CEO of Postcode Anywhere said: “Insurance companies stand to realise huge savings and increased revenue opportunities by improving the quality of their customer and prospect data. The current system many insurance businesses work from is outdated, inaccurate and costly. There are new solutions available that provide real-time updates that reflect the daily changes made to the Royal Mail’s database. But if insurance companies fail to capitalise on these new, easily adopted systems they might not end up with records as accurate as they might assume.

“Including Not Yet Built data and daily updates can open the door to literally thousands of previously inaccessible prospects. Knowing exactly how many households are connected to each delivery point is also essential for utilities and telecoms companies who need to ‘catch’ those customers the minute they move to their new house. Enhancing data insight to increase effectiveness and efficiency is imperative, not only from a customer and sales perspective, but also from a wider organisational point of view.”

ENDS

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Insurance companies could lose out on £200M because of outdated data - Tweet this

In the last year, 219,690 new addresses were added to the PAF database - Tweet this

The average household spends £136 on home insurance - Tweet this

The average households spends £652 on car insurance - Tweet this

There are over 350,000 addresses in the Not Yet Built database - Tweet this

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