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Retention Analytics
A multi-line P&C insurer needed a deeper, more reliable understanding of what drives customer and policy retention across its Commercial, Personal, and Farm books. Traditional retention levers, such as price changes, came with direct loss ratio implications, yet the company lacked a unified, analytical way to assess customer elasticity, profitability segments, and emerging churn risks.
PremiumIQ partnered with the insurer to develop a comprehensive retention data mart and a suite of operational dashboards. These tools illuminate how pricing, discounts, claims, agency characteristics, geography, and customer behavior influence retention outcomes. The result is a data foundation that supports smarter rate-taking, better product packaging, early intervention strategies, and materially improved portfolio performance.
The Challenges: Blunt Levers and Limited Insight
Although the insurer had access to large volumes of retention-related data, decision-makers struggled to use it effectively. The core problems included:
A lack of unified retention metrics across 1-, 3-, and 5-year horizons
No visibility into price elasticity by customer profitability segment or geography
Disconnected data sets that obscured relationships between retention, premium changes, rate actions, and market factors
Difficulty identifying early indicators of customer churn
Inability to easily explore retention dynamics by line of business, product, or behavior patterns
Without a standardized, analytically rich view, leaders were forced to rely on assumptions or overgeneralized strategies, limiting both growth and profitability.
The Solution: A Retention Data Mart and Decision-Ready Dashboards
PremiumIQ designed and delivered a scalable, analytics-ready retention data mart that consolidates all relevant retention variables into a single, trusted environment. This platform enables analysts and leaders to slice and interrogate retention trends with precision.
Key features include:
Up-to-date 1-year, 3-year, and 5-year retention metrics for all business lines
Deep drill-down capabilities across geography, segment, premium change, LOB, product, and customer behavior
Trend visualizations and tabular views for advanced exploration
Download-ready datasets to support actuarial and analytics workflows
Management dashboards that surface the variables that matter most for executive decision-making
These tools operationalize retention insights, enabling teams to act rather than hunt for data.
The Impact: Smarter Pricing, Higher Retention, Stronger Profitability
The insurer now has a full view of how different classes of variables influence retention, and this visibility has reshaped its strategy for both growth and profitability.
Key outcomes include:
Confident, analytically grounded pricing strategies
Insight into price sensitivity by segment and geography
Improved retention management toward the 90 percent target
Better alignment of product packaging and discount strategies
Early detection of churn risks, enabling proactive outreach
A more disciplined, data-driven approach to retention across the enterprise
By linking retention behavior to profitability levers, the insurer can optimize both revenue and risk.
Why It Matters
Retention is one of the most powerful drivers of profitability in P&C insurance. Understanding the interplay between price, behavior, and customer value is essential to balancing rate adequacy with market competitiveness. By consolidating retention data into a trusted, intuitive analytics environment, the insurer eliminated guesswork and empowered leaders with insights that improve pricing, strengthen customer relationships, and protect the portfolio.