Challenges with Customer Retention

Globally, insurers lose 18-20% of their customers annually. Insurance companies have taken various initiatives to improve retention rates, but the problem remains deep-rooted with no quick fix solution. It is a complex issue dictated by a combination of factors. Some of these include the macroeconomic environment, product parameters, demographics, payments, etc. Unfortunately, there are no best practices documented for retention control.

Data Analytics to Boost Retention in Insurance

The key to effectively arrest lapsation lies in leveraging the knowledge that is already available regarding the customer base. However, the key disconnect occurs in using the underlying information optimally and in real time. Data analytics, specifically that which incorporates both structured and unstructured data and combines customer and distribution level interaction has the potential to impact retention in insurance.

Aureus happy customerRetention Modeling with CRUX

We understand that the retention approach has to be consistently refined and fine-tuned to reflect not only the macro factors but also organizational strategy and tactics. 

CRUX lets us do that and more by building comprehensive persistency control and management framework, which works at the point of decision. It empowers organizations to predict and manage the development of retention in Insurance across product lines. CRUX uses internal, external, structured, unstructured data sets to power these predictions and insights. These insights can further power other functions like customer service, collections, claims, and marketing, etc.

CRUX for Retention Analytics

CRUX helps insurers tackle retention in insurance by using predictive analytics and machine learning. By adding intelligence to activities like segmentation and prioritizing customer reach out, CRUX drives operational efficiency and effectiveness and reduces cost. It also impacts the overall customer experience by making customer-focused communication more relevant.

 

Click below to schedule a demo of how CRUX can help your organization improve customer retention.

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