Reducing Churn to Improve Profitability
How P&C carriers can increase profitability quickly and cost-effectively in a challenging business climate
There is no denying it, Property and Casualty insurers are facing more challenges today than ever before. Rising loss costs — $2.6 billion in the US alone in 2022 — are making bottom-line profitability uncertain as the industry faces significant headwinds, including inflation, increased claims severity, rate challenges, and fierce competition. That’s on top of macroeconomic and geopolitical uncertainty.
P&C carriers need to be creative and take a multi-pronged approach when it comes to managing profitability. Relying solely on premium increases will not suffice, especially with the lengthy process of each state approving such rate changes. Updating aging technology and leveraging new tools like AI and automation to streamline processes, reduce operating costs, and increase business agility are crucial steps — but these remedies take time to implement.
There is one quick, cost-effective, and efficient strategy that can deliver measurable profitability improvements in the short term: increasing policyholder renewals. This white paper discusses how insurers can increase customer satisfaction and grow customer lifetime value and offers a solution that empowers carriers to boost their policyholder retention rate.
The endgame: growing customer lifetime value
Insurance customers have more options and more pricing information than ever before, and there are many competitors chasing your book of business. At the same time, people have been conditioned by highly responsive, data-driven technology providers to have high expectations around customer experience and ongoing engagement.
In today’s hard market, P&C carriers cannot afford to neglect any aspect of customer experience. CX is often more important to policyholders than product or price. In fact, 86% of buyers are willing to pay more for a great customer experience. Delivering an exceptional CX centered around data-driven personalization is the key to building customer loyalty, maximizing renewals to boost profitability, and elevating customer lifetime value through retention, cross-selling, and referrals.
To learn more, read this whitepaper which explores how P&C carriers need to deliver an exceptional customer experience centered around data-driven personalization which is key to building customer loyalty, maximizing renewals, elevating customer lifetime value.