The Acquisition Dilemma for P&C Carriers

Insurance carriers are searching “far and wide” for the answers to customer acquisition, but few recognize that the light at the end of the tunnel is a freight train not a kid on a moped.

Growth in the insurable public has slowed.

Carriers are pushing hard to grow their PIF books and revenue. Growth is going to have to come from securing new policies from other competitive carriers NOT from inherent growth.

With respect to personal lines, ALL carriers will have to adjust to the changing customer acquisition paradigm. Consumers are expecting the same level of service (timing, accuracy, and ease of use) from insurers that they are receiving from other non-insurance providers such as Amazon. This is even a bigger problem for smaller and non-standard carriers. As a means to achieve their growth objectives, larger carriers are reaching down to the consumers who have traditionally been the bread and butter of these smaller carriers.

The exception to this “lack of growth” paradigm is small commercial. As the growth in professional employment opportunities continue to lag for this demographic, more and more individuals are starting small businesses. This is a potential growth area for carriers, however there currently does not appear to be any consistent product or service that can aid carriers in securing this business. There are not only opportunities to provide enhanced underwriting services to this aspect of the industry, there is an opportunity to get ahead of this marketplace and design services that enable standardization of process.

Currently the commercial side of P&C insurance is the “wild west”. Since it is not a widely offered product, each carrier has their own process, and these inherent processes are very manual. Automation and consumer analytics will be a prerequisite for growth and profitability so the leaders in this aspect will get more than their share and a jump on the rest of the market.

Predictive Analytics, LLC (PALLC) is dedicated to the study and modeling of consumer behavior directly related to improving P&C carrier’s profitability. Derived from more than sixty carrier interviews PALLC will provide, in a series called “What we’ve heard”, important concerns of the industry. Since there are significant difference between Standard Preferred and Non-Standard, whenever possible, we will provide detail as to the type, size, regional or national, direct/independent channel or exclusive agent channel.

PALLC possesses comprehensive analytical capabilities to assess the data quality and accuracy in a carrier’s PIF book. From such analytical results model solutions are offered for operational and profitability improvement. For more information contact us at