The digital transformation that’s revolutionizing the industry is helping insurers improve customer experience. It’s almost like a self-fulfilling prophecy. Carriers want to make the customer experience as smooth as possible for their prospects and insureds, so they’ve implemented mobile-enabled, easy to use quoting sites that leverage time-saving practices like automated prefill. But these very practices that make shopping easier have created a negative impact on retention. In fact, LexisNexis Risk Solutions has reported through its latest shopping study that 75 percent of a typical insurer’s customers have shopped for new auto insurance at least once in the previous five years, and many do so multiple times each year.
These statistics were especially concerning for CSAA Insurance Group, a client of LexisNexis Risk Solutions. They wanted to learn more about their policyholders’ shopping behaviors, which they knew could negatively impact their profitability.
CSAA understood that their customers live in a connected, and increasingly digital world, and that as a result their expectations are changing. “Our customers move, they buy a car, they change their name, they have a baby―these are all life events that trigger a different need,” explained Linda Goldstein, Executive Vice President, Customer Experience and Marketing. “They expect that you, as an insurer, are going to act upon that information.”
Working with LexisNexis Risk Solutions, CSAA conducted a three-month pilot to test assumptions about auto shopping behavior. The pilot utilized intelligence provided by the LexisNexis® Active Insights platform, including important events that might influence a policyholder to make changes.
During the pilot, the company launched a multi-touch outreach campaign aimed at retaining its most profitable policyholders – those that the LexisNexis Risk Solutions analysis revealed were most likely to shop.
Click here to read the full case study and learn how CSAA achieved an overall retention rate increase of more than 3 percent in the test population – and how Active Insights can help you get the information you need to keep your customers happy and loyal.