Don’t Leave Me This Way: The Seven Missing Ingredients in Life Insurance Customer Retention Programs

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
August 18, 2014
Industry Trends
Global

Abstract

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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

What Are the Drivers of the Retention Problem?

2

The Seven Missing Ingredients

4

Bringing the Retention Management Framework to Life

6

Concluding Remarks

15

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