Leveraging Household Financial Position to Better Drive Anticipated Premium
Insurance firms are struggling to identify profitable target customers for new life policies. Whether targeting younger, emerging households or older cohorts, insurance firms are achieving only marginal gains in response and conversion rates from the sophisticated models that they rely on to target new life business. Insurance marketers require additional insights to positively impact total premium gathered.
Targeting that relies on measures of household financial position can better enable insurance marketers to identify consumers that are likely to have significant premium potential and more efficiently capture additional premium dollars. With IXI’s LifeScores, insurance marketers and agents can:
- Focus marketing efforts on those households that have the highest expected premium for term, whole, and universal/variable insurance and are likely to possess sufficient liquid, investible assets to annuitize
- Leverage IXI and Equifax’s proprietary financial metrics including anonymous asset-based and aggregated credit- based measures as well as measured insurance and annuity premium values
A leading insurance firm proved the effectiveness of LifeScores via a back-end analysis that demonstrated an almost perfect rank order correlation between LifeScores TermScore ranking and written premium for a recent Term Life direct mail campaign, indicating that LifeScores can provide up to a 68% lift in targeting (see chart). When TermScore rankings are deployed for future mailings, the firm can expect that 50%+ of written premium will come from approximately 30% of the prospect universe.
