Insurance acquisition requires collaboration across business functions. This latest white paper shares findings from an industry-wide research study.
There are many factors that impact insurance carrier profitability to one degree or another. However, what most carriers have in common is that they are increasingly challenged to find and keep the right customers for their business — an endeavor supported by both the marketing and underwriting/product management functions. In today’s highly competitive environment, the ability to target and attract prospects with the longest potential future relationship — or to acquire with retention in mind— is a critical undertaking if carriers are to remain profitable. To better understand the drivers behind acquiring with retention in mind, and the relationship between these two business functions in terms of delivering on this effort, LexisNexis® Risk Solutions conducted a study of the top 50 U.S. auto, home and life carriers. The findings point to numerous opportunities for marketing and underwriting/product management to more closely collaborate to improve business results, increase profitability and improve customer experience.
Billions of dollars are invested annually in consumer-facing marketing activity. Yet identifying, attracting and converting policyholders who not only align with a carrier’s risk profile but who also remain within the book of business long enough to recoup acquisition costs can often be challenging. There is no doubt that acquiring with retention in mind makes the most business sense. In late 2016, LexisNexis® Risk Solutions administered a nationwide survey of 155 decision-makers within the top 50 U.S. auto, home and life insurance carriers. Conducted anonymously and using a mix of online and telephone interviews, the study addressed:
Qualitative feedback collected throughout the study highlighted the importance of robust acquisition and retention strategies that adopt a longer-term view. Better qualified prospects identified at the point of marketing are more likely to match a carrier’s risk profile, more likely to purchase a policy and less likely to lapse. However, acquiring with retention in mind requires carriers to break down silos that may exist between marketers and underwriters/product managers. The good news is, the study indicated there is both opportunity and mutual motivation for improved collaboration between the marketing and the underwriting/ product management functions in order to improve acquisition and retention outcomes. A more collaborative and aligned approach between these business functions is a strong predictor of increased retention rates and profitable outcomes. Not only that, from a policyholder perspective, acquiring with retention in mind delivers on the promise of an improved customer experience — which could have a positive impact on customer loyalty and retention.
A Deeper Look
The study covered a variety of topics, ranging from how the two functions measure performance to strategy development and execution to leveraging data and analytics for better business outcomes. It revealed commonalities and differences, both of which point to increased opportunities for collaboration.
Access White Paper Here
We appreciate your interest.
Assess insurance leads more effectively with insurance-specific lead scoresLearn more
Refine customer segmentation for improved business resultsLearn more
Understand your insurance specific marketing attribution with Campaign AnalyzerLearn more
Actionable intelligence for active risk managementLearn more
Target better prospectsLearn more