Policyholders Switching Carriers? We Have a Solution.
The property and casualty insurance industry has made great strides in digitizing the policy renewal processes. It’s been a paradigm shift across the industry which was necessitated by many drivers, including the necessity to meet the expectations of customers in this evolving digital era. Bringing advanced technologies such as the Internet of Things (IoT), Generative AI, machine learning (ML), and predictive analytics into risk assessment have helped transform the efficiency and profitability for P&C insurance carriers.
As insurers navigate a complex risk landscape and adopt advanced technologies for greater operational efficiency, there’s still room for improvement in the renewal process, especially as more policyholders switch carriers.
The Great Price-Shopping Wave has Begun
Policyholders are switching carriers at some of the highest rates in history. The trend has been driven by consumers choosing to not resign themselves to higher premiums while insurers diligently adjust strategies to retain customers for long-term growth. This ‘great insurance shop-around’ is motivated by a situation of an average cost of car insurance jumping more than 20% since last year and home insurance premiums hitting double-digit rates. The situation is leaving carriers up against a rock and a very hard place as many are needing to price insurance according to the level of risk that now exists.
Unfortunately, it is well-known in the industry that new business possesses higher risk than renewal business. Retaining long-term, stable policyholders is typically more profitable for insurers than losing them to competitors. It is of great importance then that insurers do everything they can to deter the chance of a policyholder leaving them for another carrier.
But What if Pinpoint Could Help Ease Some of the Pressure?
For P&C insurance carriers facing unprecedented numbers of loyal policyholders switching for lower rates and experiencing an increase in new customers coming onto the books who may or may not even stay for the long-term, Pinpoint offers a solution by helping insureds gain a more complete and precise risk profile on the policyholders.
- Inform a Healthy Renewal Strategy – Pinpoint helps P&C insurers refine their renewal strategy with person-level intelligence that captures a complete view of the insured risk profile. This advanced intelligence supports data-driven decisions, providing predictive insights to guide renewals for long-term policyholders and develop retention plans for new clients ahead of future renewals.
- Inspection Priority- The next benefit in leveraging Pinpoint during the renewal process is in inspection prioritization decisions. Renewal teams gain access to intelligence at the policyholder level to formulate the process for those who may indicate inspection, and at what level of inspection is warranted, prior to renewal. Applying predictions to the renewal book, carriers leverage predictions that support precise evaluation and then triage those policies for appropriate action.
- Customer Retention- Finally, carriers can maximize retention using Pinpoint predictions to empower the ability to personalize the renewal experience. Identify at-risk insureds likely to switch carriers or cancel early, and develop targeted renewal strategies along with personalized communication and interaction plans to ensure every customer receives a truly customer-centric experience.
Pinpoint for Renewals Advantage
Pinpoint for Renewals helps insurers prevent customer churn and protect profitability. It enhances accuracy in attracting the right customers and reframes renewal processes to maintain positive customer experiences for the long term. With informed decision-making, carriers can optimize their portfolios by better stratifying renewal risks, improving rate adequacy models, and identifying situations that require additional underwriting.
With the recently published industry release from AM Best detailing the news that the homeowners insurance sector suffered a $15.2 Billion dollar loss on underwriting profit in 2023 coupled with the historical increase of consumers price-shopping insurance coverage, the time necessitates for the industry to get even more proactive to ensure retention. In utilizing the advanced capabilities of Pinpoint Predictive, insurers can shift retention success by laser-focused evaluation of risk and enhance current risk assessment methods by leveraging Pinpoint’s person-level intelligence from its risk selection platform.
For more information about how Pinpoint for Renewals is helping P&C insurers, contact info@pinpoint.ai or book a discovery call today.
