Insurance companies largely sell their health policies through brokers but a broker can represent several insurance companies. Whether by reason of cost, insurance product, or propensity of a broker to switch a group or individual to another insurance carrier, the control of such is with the broker who has direct contact with the buyer.
The largest cost is when a “healthy” group switches insurance companies leaving the departing carrier with a “sicker” pool unless the carrier can refill its customer churn with comparably healthy groups.
By identifying the predictors of customer churn, the insurance carrier can proactively reach-out to the broker to work with him with products, pricing, and incentives to mitigate or prevent customer churn of healthy groups.
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