Insurers across the globe are witnessing a declining customer lifespan or persistency and high policy lapsation rates. However, insurance carriers that have provided customers with consistently best-in-class experiences have generated about 30 percent higher profitability, in part because satisfied customers are 80 percent more likely to renew their policies. Also, acquiring a new customer is 7-9 times costlier than retaining an existing one, making it imperative for insurers to focus more on improving customer experience.^*

Insurers across the globe are witnessing a declining customer lifespan or persistency and high policy lapsation rates. However, insurance carriers that have provided customers with consistently best-in-class experiences have generated two to four times more growth in new business and about 30 percent higher profitability than firms with an inconsistent customer focus, in part because satisfied customers are 80 percent more likely to renew their policies than unsatisfied customers. Also, acquiring a new customer is 7-9 times costlier than retaining an existing one, making it imperative for insurers to focus more towards improving customer experience in their day-to-day operations.