Churn is one of those words which insurers and brokers alike dread. Basically come renewal time, many UK policyholders have a check on price comparison websites, use an app to search for cheaper car cover, or the more savvy consumers will play off their existing insurer against a cheaper rival by sending details of a cheaper price by email, or over the phone, to wangle a lower premium price.
Replacing those fickle customers costs time and money. That’s churn. So anything that can be done to reduce that ratio of new vs existing customers has to be a good thing. TIA Technology, a leader in standardized software solutions for the insurance industry, and 2021.AI, an artificial intelligence (AI) and machine learning company, are launching a solution for Churn prediction. The two companies are combining forces to help insurers improve customer loyalty, reduce their churn rate and ultimately increase their competitiveness.
Today’s insurance market is extremely competitive and insurers are struggling to attract and retain customers. In an era where consumers expect highly personalized service, insurers find it difficult to differentiate themselves. TIA CEO Christian Kromann says, “Even though our customers have very different churn rates, they are all focused on reducing churn. Studies show that decreasing customer churn rates by 5% increases profits by 25-95%.
The consultative approach we have developed with 2021.AI is designed to help our customers quickly and cost-efficiently adopt AI and machine learning to address
this widespread focus.” The growing interest in AI and machine learning are two technologies increasingly adopted by insurers to help improve customer relationships. 2021.AI CEO Mikael Munck says, “Although the uptake of AI in the insurance industry
is currently somewhere between 1-5%, we see more and more insurers taking advantage of the technology.
Gartner predicts that by 2019, 30% of online insurance sales and service will be supported by AI.2 That’s why we’ve teamed up with TIA who already have over 60 customers in the insurance industry globally and are known for their digital insurance expertise. Together we will be able to deliver the right AI solutions to TIA customers.”
Solutionstoday’s digital insurers need 2021.
AI offers a technology and algorithm platform that will be integrated with the TIA core insurance system. Although the two companies are initially focused on
helping TIA customers reduce churn, they are also developing solutions for fraud detection and intelligent claims handling.
Kromann says, “Our aim is to be prescriptive with our AI solution to help insurers gain a clear understanding of where it can help them most and how they could costeffectively adopt it. We are offering joint workshops where together we guide customers through the AI opportunity and how it can help them improve competitiveness, profitability and protect market share.”