Case Study: Auto Insurer Increases Customer Retention by 12%
An auto insurer used TAZI's Customer Retention Solution to increase customer retention by 12% and raise its average surpremium by 3.2% per month.
TAZI Team
The client
An auto insurance company in Brazil.
The challenge
The insurer faced high customer churn in a market with a growing number of competitors using aggressive pricing. It needed to predict customer behavior, identify profitable and loss-making customer segments, and understand what drives retention, including under sudden shifts in competition, economic conditions and customer risk levels.
The approach
TAZI's continuously updated AI identified and clustered customers based on their policy subscription and profitability. Each month, TAZI delivered insights for each customer segment, which the insurer's team used to set targeted pricing strategies per segment. The results of those pricing actions were fed back to retrain and improve the models every month.
Results
- 12% increase in customer retention
- +3.2% monthly increase in average surpremium
- 1-month update cycle for models and actions
The insurer gained control over its profitable and loss-making segments and could see predicted segment retention under different scenarios. Model performance improved month by month as results from each round of actions were used for retraining.