insured.io Study of 250,000 Insurance Consumers Reveals that Omnichannel Carrier Portals Can Increase Retained Premium by 25 Percent

insured.io analysis found that multiple service channels, outbound messaging, and personalization can boost retained premium by millions

insured.io, provider of a cloud-based, omnichannel customer engagement platform for insurance organizations, announced the results of an analysis of more than 250,000 property and casualty (P&C) consumers across the United States. The behavioral study found that those who use multiple service channels are 25% more likely to renew their policies than those who do not. The study also uncovers many ways for carriers to make incremental improvements in customer retention rates. The longitudinal study includes two years of data collected from insured.io’s SaaS platform, which hosts 250,000 clients of 21 US carriers. The records were analyzed in September 2023 by an independent data scientist specializing in insurance data analysis.

“In a world driven by convenience and accessibility, customer engagement is key to the success of any business. For insurance providers, this means offering seamless and user-friendly digital experiences,” said Steven Johnson, co-founder and head of product for insured.io. “Even we were surprised by the magnitude of an omnichannel approach’s impact on customer retention.”

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The Power of Omnichannel Engagement

One of the most significant findings is that utilizing multiple self-service channels significantly increases customer retention. Customers using an insurance portal are 12% less likely to cancel their policies compared to those who do not engage with the portal. Those who use multiple channels are 21% less likely to cancel their policies, and those who repeatedly use them show a 25% higher retention rate.

Moreover, customers who use advanced features like policy document retrieval and ID card access exhibit even higher retention rates. Repeated interaction with the portal solidifies customer trust and commitment.

With 85% of users accessing the portal through their mobile devices, a mobile-first approach to customer engagement has become essential.

SMS Messaging Reduces Cancellations 52%

Outbound messaging plays a pivotal role in customer retention and premium renewal collections. The study shows that 26% of customers whose policies were on the verge of lapsing promptly paid their premiums after receiving a single SMS alert notifying them of the impending policy cancellation. Furthermore, sending a cancellation message via SMS on the renewal day slashed cancellations by 52%.

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Acquiring Email Addresses Matters

The study shows that securing a customer’s email address through the portal boosts retention by 13%. This seemingly minor detail in the customer profile has a profound impact because it signifies trust in the carrier and a willingness to receive communications.

IVR – A Time-Saving Retention Powerhouse

IVR (Interactive Voice Response) usage demonstrated its ability to enhance customer retention. Customers who frequently use IVR services exhibit a 24% higher retention rate than those who rely exclusively on live customer service agents.

Calls to the carrier’s IVR take 58% less time than a similar call to a customer service representative. This substantial time-saving advantage provides customers a faster, more convenient service experience, further solidifying their loyalty.

Convenience of Off-Hours Access

Customers appreciate the flexibility of accessing services on their terms in today’s fast-paced world. In the study, 20% of customers actively use the portal during weekends, and 48% make premium payments outside traditional business hours.

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