Don’t Leave Me This Way: The Seven Missing Ingredients in Life Insurance Customer Retention Programs
The Australian life insurance industry has recently experienced its highest lapse rates of the past 20 years. This in itself would be a cause for alarm, but the impact of high lapse rates has been compounded by a spike in claim rates, looming economic uncertainty and falling profitability. Insurers have had to be selective in their battles with an overreliance on improving economic conditions and industry initiated changes to address the retention issues.
This report provides Oliver Wyman's perspective on the seven key ingredients lacking in customer retention programs. It is intended to be a useful guide to benchmark against your company’s existing customer retention efforts.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
What Are the Drivers of the Retention Problem?
The Seven Missing Ingredients
Bringing the Retention Management Framework to Life