Improving retention in the post-level term period
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When a level premium guarantee comes to an end, premiums can instantly jump 10 to 20 times higher. It’s a shock to customers, many of whom will let their coverage drop immediately or within a few months – creating the shock lapse and losses in both income and the healthiest lives. Consumers lose needed protection, and you’ve lost another valuable customer. Solving this issue with a win-win model is one of many tools Swiss Re has developed to help you actively manage your inforce business.
After years of analyzing lapse patterns, applying sophisticated predictive modeling, and using behavioural insights to improve customer communication, we have proven methods that can help reduce the shock lapse. We use these same methods in other ways to extract more value from your inforce and deliver more value to your policyholders ‒ all at the same time.
We offer a range of tailored services to build your retention capabilities and improve persistency, mortality, and profitability. And we guide you through the process from start to finish.
How does it work?
We combine the power of data, insights on policyholder behaviour and your own customer experiences to jointly design and implement solutions to help keep more customers covered for longer. It's a joint process that's rigorous, iterative and end-to-end, and reflects your needs and practices.
Together we work with you to craft a plan, identify areas with the greatest potential, implement change, track the effects, measure the results and…reap the rewards.
Tools we use to help
- Lapse sensitivity analytics
- Sophisticated predictive models
- Insights into drivers of consumer lapse based in behavioural science
- Regulatory insight and product structuring
- Support for negotiations and restructuring
- On average, the persistency rate is tripled
- Mortality rates are cut in half
- Significant cash flow improvement due to improved persistency and profitability
Is there more potential hiding in your inforce portfolio? Contact your Swiss Re representative, and let’s explore the possibilities together.