How a North American General Insurer
Reduced Policy Lapses by 18% with AI-Driven Customer Intelligence

Problem Statement

Policy renewals are a key revenue driver in general insurance. However,
the insurer faced multiple challenges:

  • Limited visibility into customer behavior and renewal intent
  • Generic renewal outreach that failed to engage policyholders
  • Inability to proactively identify and retain high-value customers

As a result, the company experienced increasing policy lapses and missed opportunities to maximize customer lifetime value.

Key Challenges

Lack of Renewal Risk Insights

The insurer was unable to accurately identify customers at risk of non-renewal, leading to reactive and delayed retention efforts.

Low Engagement in Renewal Campaigns

Renewal communication was not personalized or timed effectively, resulting in low response and conversion rates.

Fragmented Customer Data Landscape

Customer data existed across multiple systems including policy, claims, and service platforms, limiting the ability to create a unified customer view.

Solution Implemented

To overcome these challenges, the insurer implemented Custonomy, an AI-native Customer Data Platform powered by Digital Twin of the Customer, to unify data, predict churn, and drive personalized engagement.

Customer 360 View Creation

Integrated data from policy, claims, and digital touchpoints to build a unified, real-time customer profile.

Predictive Churn Modeling

Leveraged machine learning to identify customers with high likelihood of policy lapse using behavioral and transactional signals.

Personalized Renewal Campaigns

Designed targeted renewal journeys with customized messaging, timing, and offers based on customer segments and predicted intent.

Omnichannel Engagement Execution

Activated campaigns across email, SMS, contact centers, and digital platforms to ensure consistent and timely communication.

Business Impact

By adopting a proactive, data-driven approach, the insurer achieved:

18% reduction in policy lapses,

strengthening customer retention

driven by personalized engagement

Improved renewal conversion rates,

Enhanced customer experience,

with relevant and timely interactions

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