The Challenge: A Flood of Price Conscious Members Means Trouble
In the post ACA era, the rapid expansion of the individual insurance market has effectively increased access to healthcare for millions of Americans. As members who bear personal costs of their policy, this new population has proven to be understandably more price-conscious and therefore more susceptible to the promise of lower premiums. In insurance lingo, defections of this nature are referred to as “churn.” And given that research suggests nearly 80% of a company’s future revenue comes from only 20% of existing customers,1 it’s easy to see why being able to accurately predict when a member is about to jump ship has become an important part of the individual insurance business model.
Our Solution: Seek & Save
To address the increasingly challenging rate of member churn on the individual insurance market, a major southern payor came to Amitech looking for a solution that would help them identify at-risk members and target them via strategic interventions at critical moments in the renewal process.
Want to know how it worked out? Please download the full case study for additional details and results!
1. Deloitte, Inc.