Challenge
A nationwide insurance company wanted to reduce a 13% annual attrition rate.

Solution
Using Marketing Optimization approaches, Allant helped the insurance company understand the customer behavior that was driving cancels and develop separate retention treatments around each type which included 1) passive cancels, 2) active cancels and 3) indirect cancels. Allant then helped the client build the business case for retention that quantified the financial impact of reducing attrition rates by cancel type and product.

LTV and integrated acquisition models were then build to improve the quality of new customers and predict customers most likely to attrite. Deliverables included a forecasting system that identified and forecasted seasonality and trends of attrition rates by products, account types, markets and other defined dimensions. Six specific opportunities to impact annual premium through the retention strategy were identified:

• Customer Save Strategy
• Product Education
• Customer Insight
• Targeted Contact
• Acquisition Integration
• Channel Management

Allant then designed the supporting infrastructure to support the ongoing solution including the database environment, management reports and integrated analytic systems.

Results

• The retention solution, through early testing of 3% improvement in retention rates, was projected to create over $100MM in annual retained premium over the average lifespan of the policies.