Digitization is affecting industries across the board. The growth of digital channels that provide consumers with multiple choices for auto and home policies promise savings by showing several price quotes so they do not need to comparison shop on individual sites, or through an agent. When customers have more transparent choices when it comes to coverage, it’s not unusual for them to switch carriers several times in their lifetimes.
The proliferation of these channels puts ever-increasing pressure on carriers to attract customers more likely to remain with the carrier. On average, nearly one third of policyholders will switch before the end of the first term. This has a significant impact on a carrier’s profitability as they are not able to recoup the acquisition cost of that customer.
Add to this the non-monetary cost of losing policyholders, including:
- Loss of opportunity to cross-sell or up-sell additional coverage
- Loss of additional revenue through customer referral
- Lost feedback with no opportunity to improve
- Opportunity for a carrier’s competition
Identifying, attracting and retaining high-quality policyholders is a challenge that faces carriers across the industry. To do this, insurers must amass and utilize highly predictive, insurance-specific intelligence while prospecting. Doing so allows you to more accurately determine a prospect’s retention potential.
But even in this era of big data, when an overabundance of information about prospective and current customers is available at the click of a mouse, the process can still seem overwhelming.
LexisNexis® Risk Solutions has a unique insight into the insurance marketplace. In our new whitepaper, Acquire with Retention in Mind, we identify three key indicators that measure the potential:
Identity Verification affirms the integrity of identity-related data.
Analytical Models that Predict Potential Risk and Attrition identify prospects more likely to be retained.
Real-time Lead Assessment and Evaluation enables a carrier to prioritize a lead quickly, improving customer satisfaction.
When carriers focus on these indicators, they can better identify, attract and retain the most valuable policyholders. Click here to download the white paper.