Case Study: Leading U.S.-Based Property and Casualty Insurer improves policy retention by 1% with WNS demand modeling

A Leading Insurer Increases Customer Retention by Creating a Strong Demand Model

A leading U.S.-Based Property and Casualty Insurer needed to better understand the drivers of customer retention, mid-term cancellations, and quote conversion in the auto insurance market amid slow growth and pressure to improve pricing. The insurer wanted to pilot the effort in one state and gain a clearer view of willingness to pay and price elasticity, using WNS demand modeling and pricing analytics to support the challenge.

WNS built a comprehensive demand model by preparing policy, driver, vehicle, demographic, renewal, conversion, and competitor-rate data, then applying logistic regression to predict retention and conversion behavior. The solution helped the insurer improve policy retention by one percent while maintaining profitability, and WNS also enabled the model to be extended to auto insurance products in other U.S. states as part of the customer’s nationwide strategy.