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Post the Sale – How Insurers can Maximise the Customer Lifetime Value

I got into a minor accident recently and was not sure if I wanted to file a claim or simply inform the insurance company. So I called up this executive of a hot-shot new-age insurance start-up who couldn’t solve my query. A few follow-ups and irritating calls later, I finally had a resolution. That experience was not half as delightful as their well designed UI.

This set me thinking. While InsurTech start-ups are so focused on conversion numbers – are they missing out on engaging the most pliable customers – Their current ones.

A quick search yielded that while the start-up had done some serious hard-sell pre-sale, post-the-sale there was nothing!

Therein lies the opportunity for an insurer to connect with the customer post-the-sale.

A unique aspect of insurance is that disassociation date with the customer is known during association. Hence, it’s imperative that a structured thought process be used to ensure continuity and expansion of the Lifetime Value of the customer.

Increasing the LTV requires meeting the following 3 objectives.

  1. Ensuring the well-being of the insured.
  2. Upsell & Cross-sell of Products
  3. Building Customer Loyalty

The Customer Experience(CX) post sale makes or breaks these objectives.

In a consumer’s life cycle the steps involved include evaluating need to buy> Researching product > Planning > Opportunity Identification > Getting Quote > buying of policy;


the consumer has limited to no engagement beyond  evaluating the need for renewal (assuming a claim-free period)

Insurance Consumer Lifecycle

The Insurance Value Chain intersects with the Consumer Lifecycle to create Customer Experiences.

The Insurance Firm needs to maximise these Customer Experiences to increase the LTV. To achieve this, it is imperative that the Consumer Lifecycle post-the-sale be extended to create more such Experiences.

The key phases to create more Experiences would be

Educate > Engage > Reward > Renew    


Inform the customer about his policy benefits leading to secondary ripple effects

Reassure his choice of insurer by serving up social validations, case studies and positive metrics.


Create awareness about innovation in insurance and newest products to seed up/cross-sell.

Touch base with him on his go-to social forums online & offline to create conversations.


Involve the customer by providing ancillary services centred around the insured.

Gamify his engagement by rewarding through social recognition, positive metrics and discounts.


Initiate renewal by reminding the customer about his experiences over the engagement.

Push out the renewal notices with assurances of even better service experience.

The right Product-Marketing Mix and the effective use of channels like Apps, e-mails, forums, TVCs and social media is key to achieving a world class CX. Structuring the post sale engagement will have a serious positive uptick on revenues.

Note: Motor Insurance was the underlying base for this article. However, it holds true in varying degrees for all types of Insurance products.


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Retention playbook for Insurance firms in the backdrop of financial crises

4 minutes read

Belonging to one of the oldest industries in the world, Insurance companies have weathered multiple calamities over the years and have proven themselves to be resilient entities that can truly stand the test of time. Today, however, the industry faces some of its toughest trials yet. Technology has fundamentally changed what it means to be an insurer and the cumulative effects of the pandemic coupled with a weak global economic output have impacted the industry in ways both good and bad.

Chart, line chart

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Source: Deloitte Services LP Economic Analysis

For instance, the U.S market recorded a sharp dip in GDP in the wake of the pandemic and it was expected that the economy would bounce back bringing with it a resurgent demand for all products (including insurance) across the board. It must be noted that the outlook toward insurance products changed as a result of the pandemic. Life insurance products were no longer an afterthought, although profitability in this segment declined over the years. Property-and-Casualty (P&C) insurance, especially motor insurance, continued to be a strong driver, while health insurance proved to be the fastest-growing segment with robust demand from different geographies

Simultaneously, the insurance industry finds itself on the cusp of an industry-wide shift as technology is starting to play a greater role in core operations. In particular, technologies such as AI, AR, and VR are being deployed extensively to retain customers amidst this technological and economic upheaval.

Double down on digital

For insurance firms, IT budgets were almost exclusively dedicated to maintaining legacy systems, but with the rise of InsurTech, it is imperative that firms start dedicating more of their budgets towards developing advanced capabilities such as predictive analytics, AI-driven offerings, etc. Insurance has long been an industry that makes extensive use of complex statistical and mathematical models to guide pricing and product development strategies. By incorporating the latest technological advances with the rich data they have accumulated over the years, insurance firms are poised to emerge stronger and more competitive than ever.

Using AI to curate a bespoke customer experience

Insurance has always been a low-margin affair and success in the business is primarily a function of selling the right products to the right people and reducing churn as much as possible. This is particularly important as customer retention is normally conceived as an afterthought in most industries, as evidenced in the following chart.

Chart, sunburst chart

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        Source: econconusltancy.com

AI-powered tools (even with narrow capabilities) can do wonders for the insurance industry at large. When architected in the right manner, they can be used to automate a bulk of the standardized and automated processes that insurance companies have. AI can be used to automate and accelerate claims, assess homeowner policies via drones, and facilitate richer customer experiences through sophisticated chatbots. Such advances have a domino effect of increasing CSAT scores, boosting retention rates, reducing CACs, and ultimately improving profitability by as much as 95%.

Crafting immersive products through AR/VR

Customer retention is largely a function of how good a product is, and how effective it is in solving the customers’ pain points. In the face of increasing commodification, insurance companies that go the extra mile to make the buying process more immersive and engaging can gain a definite edge over competitors.

Globally, companies are flocking to implement AR/VR into their customer engagement strategies as it allows them to better several aspects of the customer journey in one fell swoop. Relationship building, product visualization, and highly personalized products are some of the benefits that AR/VR confers to its wielders.  

By honoring the customer sentiments of today and applying a slick AR/VR-powered veneer over its existing product layer, insurance companies can cater to a younger audience (Gen Z) by educating them about insurance products and tailoring digital delivery experiences. This could pay off in the long run by building a large customer base that could be retained and served for a much longer period.

The way forward

The Insurance industry is undergoing a shift of tectonic proportions as an older generation makes way for a new and younger one that has little to no perceptions about the industry. By investing in next-generation technologies such as AR/VR, firms can build new products to capture this new market and catapult themselves to leadership positions simply by way of keeping up with the times.

We have already seen how AR is a potential game-changer for the insurance industry. It is only a matter of time before it becomes commonplace.


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