Do the words comparison site make you squirm a little?
The UK insurance industry suffers the highest rate of customer churn versus other service industry segments. A recent customer retention survey commissioned by Accenture estimated that insurers lose around 20% of their customers each year that results in £3.3 billion of churn across home and motor insurance alone. That equates to approximately £500,000 to £1 million in lost premiums for every 1,000 policies.
There are three key areas to focus on:
- Customer insight – how well do you know your customers? Do you have the data? Do you have the segmentation? Do you have the interaction?
- Personalised products and services – do you offer them? Can you operationally support them?
- Channel Recognition – Customers are setting the tone now and have increasingly complex purchase journeys. How are you acknowledging the shift?