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Policyholder retention is the lifeblood of insurance companies. Winning new customers is critically important, however the cost associated with retaining a policyholder is a small fraction of the cost to acquire a new customer. Once new customers are converted into policyholders, the attention and personal touch of the initial sale is often lost. Policyholder loyalty can drift as the proactive communications of pursuing the sale transitions to the reactive responses to the occasional policyholder service inquiry or claim. Touchpoints become primarily limited to billing and premium payments.
The most cost-effective and efficient avenue to increasing retention is by establishing positive and lasting customer experience throughout the policy lifecycle through the use of automated and intelligent proactive communication. In this Hot Topics Q&A, we take a look at some of the common questions about proactive customer communication and how insurers can achieve it.