Data-driven insights for life insurance has been saved
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Cross-sell & Upsell
Creating customers for life
Helping one company better meet client needs
A large life insurance company discovered that three to seven years after initial life insurance policy purchase, most customers had new financial requirements and additional coverage needs due to various life events, such as new children, a bigger salary, or a new house. The company wanted a way to identify customers whose needs had evolved, who were most likely to purchase additional coverage or products, and who might qualify for accelerated underwriting, since policy upgrades would be easier and more attractive for them.
The solution
Using PredictRisk’s data-driven insights, Deloitte helped the company identify this important customer segment, create health risk profiles, and calculate financial needs and means for each policyholder. A streamlined, six-question application was developed to engage those customers and offer an opportunity to double their policy with no further effort.
The impact
As a result, cross-sell rates from marketing campaigns and subsequent sales increased, from previous rates of less than one percent to new rates in the high teens.
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Accelerated underwriting
Enabling accelerated underwriting
Helping one company reduce time and cost of sales
Hindered by excessive costs and lower close rates, one life insurer wanted to accelerate its underwriting process without compromising its existing standards. The goal? To reduce time and cost of the policy sales process—from life insurance application to policy issue—by applying predictive analytics and automation.
The solution
Using PredictRisk’s predictive analytics, Deloitte helped the company combine traditional data, including application information, motor vehicle reports, and underwriting process data, with health risk insights to speed underwriting decisions without the need for invasive procedures.
The impact
With these data-driven insights, the company was able to reduce underwriting requirements and timeframes for 40 percent of its applicants, shortening the time to policy issuance from more than thirty days to just one day. Accelerating the process delivered significant gains, including:
• Reduced underwriting costs, especially those associated with external processes and vendors, such as paramedical exams and lab work
• Decreased total not-taken rate by more than 30 percent because of the one-day processing
• Increased individual life insurance sales by more than 10 percent in the first year
The simplified process and immediate payout also inspired agents to sell more, a trend that continues today.
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SALES & MARKETING
Improving sales with predictive analytics
Helping several companies improve sales
It’s a common misconception that we know all there is to know about selling life insurance. But traditional insurance calculators and approaches aren’t always effective in helping agents sell more insurance. Nowadays, predictive analytics and advanced technologies are must-haves for insurance companies to acquire the insights needed to successfully identify, attract, and engage customers throughout their life journey.
We helped several companies sell more life insurance and strengthen customer relationships in the following areas:
• Focusing efforts on the right customers
• Setting the right expectations in the insurance sales process
• Improving the accuracy of the insurance coverage amount
• Improving and accelerating underwriting
• Understanding the customer’s changing needs over time
