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A leading property and casualty insurance company needed to better understand its customer base in order to grow. Bain determined that both customer retention and penetration provided significant opportunities. We helped our client design customer-focused programs that increased both customer retention and market share.
In order to grow, InsureAllCo* needed to better understand its customer base.
InsureAllCo is a leading property and casualty insurance company with a very high market share among U.S. households.
The company had a respectable customer defection rate of less than 6% per year. Company managers believed that only inferior customers were defecting.
Management's goal was to grow through increased share of wallet with best-risk customers, but they did not know how to do this effectively. InsureAllCo asked Bain to help determine how to grow share of wallet.
By using root cause analysis, Bain was able to determine that InsureAllCo had significant opportunities to retain existing customers and gain greater penetration in the market.
To enhance its value proposition and improve retention, Bain recommended that InsureAllCo initiate programs focused on managing household events and improving agents' responsiveness to customers.
Acting on Bain's recommendations, InsureAllCo implemented a number of customer-focused programs that improved overall company performance.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.