Blog

Thoughtware

How CXIS’s Retention Improvement Program is Helping Insurers

It’s easier than ever for consumers to find insurance, compare costs, and switch plans—which can both help and hurt insurers. With a commercial about saving money on your insurance playing every five minutes, it’s no surprise that policyholders are tempted to shop around. Because of this, P&C insurers are often faced with policyholders who, rather than opting to remain on their plan, choose to switch providers at the renewal period. Lured by promotions, these policy-hoppers seek the best deals and change policies when they think they spy greener grass elsewhere. Combatting this trend can be difficult, however, CX Insurance Services’ Retention Improvement Program has proven effective at slowing the tide.

Measurable Increase in Policy Retention

P&C insurers who have had the opportunity to utilize the CXIS Retention Improvement Plan have reported an increase in retention of approximately 2-3%. Some companies, including Le Mars Insurance, a Donegal Insurance Company, have seen an increase of up to six points in policyholder retention. This saves insurers money since retaining policyholders costs less than attempting to acquire new policyholders. In addition, it increases the opportunities for cross-selling and upselling. Not only is this beneficial for P&C insurance companies but it can help better support policyholders as well. With a measured approach to targeting at-risk policies and a deeper understanding of why policyholders choose to not renew, P&C insurers can craft a cohesive strategy to retain more customers and propel growth. A 2-3% increase may seem small, however, it translates to large results when the saved premiums are taken into account. Our video explains this further.

More Than Just Analytics

CXIS’s Retention Improvement Plan isn’t just another analytics package. CXIS President Joseph Serrano put it succinctly when he differentiated the company’s Retention Improvement Plan from others. “Our program is a different blend of data aggregation and tactical business process. Data on its own can be somewhat useless—it helps to actually do something with it. Our retention program is delivering results for P&C companies because it’s a balance of targeting, predicting, and tactical policy retention. We’ve fused technology and service together in a simple monthly subscription model, and the ROI for clients has been compelling. So in other words, things actually get done.”

Having the information you need to better target your efforts can help you maximize your retention opportunities and identify areas with growth potential. With CXIS’s web automation, P&C licensed services, and predictive analytics, your team can focus on what they do best—selling policies. Your team won’t just have data in their hands, they’ll have a strategy they can implement to increase their retention. Thanks to CXIS’s ability to identify leading indicators of nonrenewal, you’ll be able to save more at-risk policies. Combined with CXIS on-shore outsourcing capabilities, the CXIS Retention Improvement Program can help insurance companies achieve better profit margins while exceeding policyholder’s customer service expectations.

Make CXIS Your Partner in Retention—and Growth

Partnering with CXIS is simple. Whether you’re interested in business process outsourcing or policy retention, CXIS supports P&C partners in maximizing their business potential. With over 75 combined years in P&C, we use our expertise to support insurance companies across the U.S. by offering a customized approach to operational support and agent and policyholder experience.

Growing your insurance company in the current business climate can be difficult. With CXIS, you don’t have to go it alone. If you’re ready to learn more about how CXIS can help you retain your current policyholders and promote policy growth, contact us today.

Joseph Richard Serrano

By Joseph Richard Serrano
President, CX Insurance Services

Platform? We Don’t Need Your Stinking Platform…

CX Insurance Services insurance business process outsourcing

Here’s a fun way to place the broadening P&C talent gap in some context:

1.)  Do you work at a P&C Insurance Carrier?

2.)  Is the inability to find exceptional good sufficient talent materially impacting your business?

If #1 is “Yes”, then we both know the second answer.  The stats aren’t difficult to find:

  • Average age in the P&C industry is 56
  • 400,000 P&C jobs to fill by 2020
  • 25% of current insurance professionals to retire by 2018
  • And so on…

An Increasingly Common Answer

Not surprisingly, the insurance business process outsourcing market continues to expand at YOY double-digit growth.  Accelerating this trend is a broader understanding in the boardroom that “outsourcing” doesn’t mean “offshore sweat shop”.  These days, the business case isn’t even necessarily a cost play.  Today’s business process outsourcing market enables P&C carriers to quickly enhance capabilities, broaden distribution, tap into innovation, and often times deliver a customer experience superior to the one those resistant to change aim to protect.  It can be supplementary; not necessarily job-replacing.

Nonetheless, P&C carriers remain challenged:  most P&C business processing outsourcing vendors mandate the usage of their policy administration and/or claims platform for the delivery of operational services.  But what about the carriers that just completed (sort of) a multi-year, multi-million, multi-CIO implementation or modernization project?  What about the carriers that’ve concluded that simply re-facing their legacy system with customer engagement & workflow enhancements likely yields a commensurate ROI a heckuva lot faster?  Or in short:  what about the carriers that don’t need a new platform?  

Beyond technology constraints, many companies simply don’t need full-blown outsourcing.  Often times more targeted or “surgical” support would help a carrier achieve operational, production growth, or retention objectives:

  • Policy Administration & Customer Service:  Overflow Capacity, Extended Hours
    • Alleviate Operational Constraints; Provide “When-I-Need-You” Service
  • Underwriting:  Low-Level Underwriting Support, Inspection Reviews, Renewal Re-underwriting
    • Free up precious Underwriting Talent to focus on more valuable risk review & selection
  • Claims:  Outbound Claim Status Updates
    • Customer experience, and thereby retention, is materially improved when the insured feels informed
  • Sales:  Outbound sales support to follow-up on prospects (for Agent Partners or Direct Carriers)
    • Expand distribution reach (particularly effective 5 – 7:30 PM local time)

The (Very) Short List

While a shorter list, P&C operational support companies that deliver services on their clients’ platforms actually do exist.  The list shrinks if criteria include “U.S. Based”, shrinks further at “A-la-Carte / Targeted Services”, and even further yet at “Licensed Producers to Support Distribution”.  OK; too obvious?  If you’d like to know how we help P&C companies “plug the gap”, drop us a line at info@cxis.com or check us out at www.cxis.com.

Tonya Rene Cruise

By Tonya Rene Cruise
Chief Operating Officer

CXIS Sponsors Run for All Children

Full Hearts at the Run for All Children in St. Pete

Run for All Children 10K

CXIS was a proud Platinum Sponsor of Running for All Children, supporting All Children’s Hospital

CX Insurance Services isn’t just about supporting property and casualty insurance companies. Not only do we aim to provide exceptional service to our clients, but we also work hard to support our community. As part of our community outreach, we were proud to lend our support to the Run for All Children, which benefits the John Hopkins All Children’s Hospital in St. Petersburg, FL.

 

For Carson and All the Children

In 2010, Brian Powers and his family suffered a devastating loss. Their son, Carson, was prematurely born, along with his twin sister. Carson passed away surrounded by his loving family shortly after birth. Powers, wanting to support the medical professionals who dedicated their lives to helping children like his son, used his loss to create a powerful event that not only helps raise funds for a great hospital but also increases awareness.

This year’s race was the third annual in what is becoming a Mother’s Day weekend tradition. Begun in 2014, the Run for All Children initially called Safety Harbor home, but the popularity of the event and the number of amazing participants have grown so much it was necessary to relocate. Now the race course takes runners through downtown St. Petersburg.

Two thousand runners queued up at the starting line in front of the hospital to run and walk. Many had personal stories to share about why they were supporting the hospital. A cornerstone of the community, Johns Hopkins All Children’s Hospital has helped treat many of St. Pete’s young population, touching the lives of families across the city.

As the race was about to begin, the runners turned to face the hospital. They waved at the patients cheering from their rooms before beginning the course. It was clear the runners carried those faces in their hearts as they made their way across the finish line and high-fived Thunderbug, the mascot of the Tampa Bay Lightning.

 

Supporting the John Hopkins All Children’s Hospital

Run for All Children 1 mile

We are honored to be able to provide our support and do our part to help the amazing doctors, nurses, and staff at the John Hopkins All Children’s Hospital in St. Petersburg. Just like the patients they serve, they are truly heroes. Our hearts were full as we watched people from across the community come together for this wonderful cause.

The Johns Hopkins All Children’s Hospital provides life-saving care to children of all ages. They also focus on research, advocacy, and education. Their caring staff not only work hard to treat the patients in their care, they also showed their love for their hospital and what it stands for by participating in the race itself. These amazing caregivers spread joy wherever they go, bringing smiles to the children in their care.

 

Keeping the Run for All Children Spirit Alive Year Round

Humbled by the perseverance of the youngest among us and their fortitude, we look forward to tackling any challenges we face head-on with innovative ideas and full hearts. The spirit of giving that filled the air during the run, the sense of community building, and the conviction of supporting a cause because it is the right thing to do will stick with us as we work hard to serve our clients with their best interest in mind.

CXIS aims to provide the best possible service to our clients by anticipating their needs. We know P&C insurance and what it takes to truly support agents. That’s why we create dedicated teams to support our clients. Let CXIS take the administrative insurance tasks off your hands so you can focus on the finish line.

Joseph Richard Serrano

By Joseph Richard Serrano
President, CX Insurance Services

Domino Effect: Claims Experience → Net Promoter Score → Profitability

Not surprisingly, Bain & Company continues to produce hard data linking the criticality of Claims Experience, Net Promoter Score, and Insurer Profitability. Consider the following:

1. Claims interactions, though infrequent, have the greatest effect on loyalty (Net Promoter Score)

Net Promoter Score

Bain & Company Research, 2014

2. Policyholders with a strong Net Promoter Score stay longer, buy more, and provide more referrals

Net Promoter Score

Bain & Company Research, 2014

At CXIS, we’ve developed a Program specifically for P&C Carriers to:

  1. Aggregate claims experience data, including Net Promoter Score
  2. Provide analytics around claims experience, NPS, and growth/profitability
  3. Facilitate a continuous improvement program – i.e. actually use the data

100% of our associates are insurance-certified (The Institutes), and we’re a Net Promoter Score certified company. Give us a shout; we can help.

Joseph Richard Serrano

By Joseph Richard Serrano
President, CX Insurance Services

Not all Hugs n’ High Fives

Corporate stock photos be damned; Customer Experience isn’t all hugs n’ high-fives.  For P&C insurers, there absolutely is an ROI for Agent & Policyholder Experience.  Consider the following:

Revenue Uplift

A $1 billion insurer stands to generate an average of $370 million additional premium over three years with a modest improvement in customer experience.
– Source:  The Tempkin Group

Retention

Nearly 2 out of 3 policyholders are at risk of non-renewal with only a neutral and/or negative customer experience.

– Source:  J.D. Power

Profitability & Growth

The close link between customer loyalty and profitability is widely acknowledged and accepted. Loyal customers devote more resources to their insurer, stay longer with that insurer, and are more likely to recommend it to family and friends. All of these factors, in turn, lead to increased profitability for the company.
– Source:  Cap Gemini

Stock Performance

A Forrester Research index of customer experience-leading companies has posted an average ten year stock return of 213% vs. the S&P 500 average of 75% from July 2004 – July 2014.
– Source:  Forrester Research

At CXIS, we’ve developed a Program for Quantitative Agent & Policyholder Experience that is designed to blend into a P&C carrier operation:

  • Continuous & real-time aggregation of agent & policyholder experience, operational, & social media data.
  • Modeling & analytics to identify impacts on policy growth, retention, net promoter score, conversion ratios, quote volumes, etc.
  • Facilitation of a Continuous Improvement Program – i.e. actually using the data; operationalized by insurance executives.

So is Customer Experience all “fluff”?  Ask companies like USAA, Southwest, & Amazon.  Or just ask us, because we actually know insurance too… info@cxiservices.com.