This article is intended to explain how our solutions can help upsell and cross sell existing policy holders as well as extend the retention rate in order to lower acquisition costs, thereby increasing profitability.
AI in the insurance industry – FCB.ai
The solutions that we at FCB.ai have created will help our insurers in the following ways:
- Revenue driven initiatives to increase the number of new business policies written
- Cost reduction by lowering the acquisition cost per policyholder
- Operational efficiencies using front of, mid and back of the lifecycle funnel solutions
We have solutions to help reduce acquisition costs at each stage on the Insurers business model and Lifecycle funnel. The front-of-funnel is where you will find the Uncontactable solution, which has already been addressed in a previous article.
The mid-funnel is where we can assist with offering the existing Policyholder with up-selling (increasing the Sum Insured of an asset or cover) or cross-selling (offering the Policyholder access to additional/different products). If the persistency ratio or stickiness of the policy is lengthened by mid-funnel interventions, then profitability increases once more.
The end-of-funnel is the attrition rate and is when the policy lapses, drops off or cancels. We have a retentions solution to recontact the Policyholder, engaging with them to lengthen their policy period with the Insurer or reintroduce them to new products and services to bring them back onto the Insurers books. If we can convince the Policyholder to remain with the Insurer at this point, the additional length of retention is around 12 – 24 months.
We are very proud to be associated with some of the leading insurers in the market, including Santam, Sanlam, Hollard, Momentum and MiWay and our success models alongside these companies, are a true testament to the value, efficiency and profitability that our solutions can offer.
If you have any questions about our solutions, or conversational AI in general let’s chat – we’re happy to help you grow your book and reduce acquisition costs.