Trends in Life Insurance: How Advanced Analytics Help Obtain and Keep Clients

Trends in life insurance continually change, though technology has changed everything about how those in the industry sell insurance policies. If you’ve already conquered the hottest digital marketing trends in the online world, do you really know the realities behind how your campaign is going? Also, how do you retain the clients you have so they don’t slip away to a competitor?

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As big data becomes an increasingly used technology in the insurance industry, those in life insurance plan to use it for more thorough analytics. Trends have this occurring throughout 2016 as life insurance companies start thinking more from an external perspective rather than internal.

In this regard, it means more focus on the customer and what they really want. At stake is being able to know clients more intimately to provide various services you could cross-sell to them.

With analytic tools that are easy to understand, you can also improve customer acquisition, customer retention, and determine customer lifetime value.

Let’s take a look at what’s available and how you can complement this with service-oriented architecture to bring better client services.

Improving Your Customer Acquisitions

Evidence shows advanced analytics can cut the cost of customer acquisitions by optimizing marketing campaign results. This works through predictive modelling and looking at various factors behind the clients you need. It delves into some more important territory like psychographics and survey data based on the prospects you have in mind.

Using big data in the mix, bringing all the above aspects together helps bring better prospect scoring. Analytic tools frequently organize this into segments where you place clients you’re trying to convert and those you’re nurturing for the future. Either segment can get divided into different variations from low to high propensity for conversion.

What’s important here is each scoring model needs continual updating due to changing market conditions. In the older days of analytics, gathered information would frequently become too outdated to become useful for life insurance firms.

Analytics for Customer Retention

While technology can help in acquiring clients, it’s just as vital as using it to retain clients. Advanced analytics once again comes to the rescue on this by showing realities you’d otherwise miss.

You can do this by using analytics to create a customer touch-point system nurturing client relationships in the first year. It starts with an annual review of the customer’s policy to see what more they may need for protection. Then it can progress to “thank you” cards (sent by email or snail mail), cross-sell opportunities, sending newsletters, plus greeting cards.

Analytics help you determine what the right approach is to all of these so you get the timing right. Cross-selling is essential to avoid any lapses from your existing clients. If a client feels their current policy isn’t right for them, cross-selling them something else that could benefit their lives benefits you.

By reading more detailed metrics, you’ll determine exactly which products would best fit those dropping their policies. You’ll also discover those most apt to respond so you don’t waste your efforts.

Predicting Customer Lifetime Value

Using the right analytics system, you should calculate customer lifetime value through a different calculation method. Studying transaction details over a year’s time matters more than demographic details since it helps determine who the most loyal clients are.

Your metrics help you organize categories for which clients you want to focus on, typically organized as Platinum, Gold, and Silver. Through these same numbers, you need to determine clients with the most risk for policy lapse as a way to judge who’s most apt to leave you.

Contact us here at Fast Technology so we can help you use new technology for your life insurance business, particularly service-oriented architecture to build new systems.

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