Case Study: CSAA Insurance Group achieves better insurance value insights with AnyLogic

Estimating the Value of Insurance Using Simulation

CSAA Insurance Group, a AAA insurer serving 3.1 million customers, needed a better way to estimate the value of its insurance products to customers and the insurer, including value to a customer (V2C) and customer lifetime value (V2I). Using AnyLogic insurance modeling software, the company moved beyond hand-built theoretical distributions to explore how policy decisions, retention, and customer life events affect value.

AnyLogic helped CSAA Insurance Group build a simulation model of 5,000 households that combined agent-based logic, predictive features, and external factors to test investment, staffing, and pricing decisions before acting. The model showed a 10-year survival rate of 25%, average V2C of $26,000, and average V2I of $387, while also revealing how retention drove both metrics and enabling CSAA to visualize positive, zero, and negative outcomes for future decision-making.

CSAA Insurance Group

Bipin Chadha

CSAA Insurance Group