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Dear Annie Analytics: Does my insurer understand me?

Analytics Advisor, IBM

http://www.ibmbigdatahub.com/sites/default/files/dearannie_insurance_blog.jpgFor tough questions related to your industry, Annie Analytics has the answers. Today, Annie Analytics advises Confused in Richmond about a volatile relationship with an insurer. According to an IDC study, Insurers generally need to spend seven times more for gaining new customers than they do to retain the policyholders they already have. Is this customer worth retaining? What can the insurance company do to improve the troubled relationship with the policyholder? Keep reading to find out.

Dear Annie Analytics,

How can I help my insurer? My insurer and I have been together now for nearly ten years, but we’ve always had a volatile relationship. Recently, it has deteriorated further. My insurer keeps sending me offers for insurance coverage that I already have, and sometimes they don’t even spell my name correctly. I’m beginning to think they don’t understand me anymore.

I keep hearing from friends and reading social media posts about how insurers are becoming more careful about whom they insure. I’m worried they might prefer someone other than me, but I haven’t had the heart to confront them about it. The problem is that I am very happy with them when they pay my claims, even those for which I was a little bit over the top in what I asked for. I never thought that they would fall for that story about losing the camera on holiday. I don’t want to ruin this friendship, but I feel as though I'm at a bit of a crossroads. I am very worried. What should I do?

– Confused in Richmond

Dear Confused in Richmond,

What your letter describes sounds like a very trying situation. Your insurer’s behavior is concerning and indicates that the problem has existed for some time. Worse, it seems to be happening with increasing frequency and could cause significant harm to your insurer.

There are two issues here: making sure you are fully protected and understanding the deterioration in your insurer’s behavior. Your insurer is likely trying very hard to make sure that you are safe; but, frankly, spelling your name incorrectly would make anyone want to change insurers. Seems like the insurer needs to at least get its house in order and clean up its records.

Once your insurer had done so, it’ll be in a better position to understand what you have and more accurately predict what you really need. Don’t worry about what you hear through the grapevine; your insurer still wants to keep you as a friend, but it needs to make sure it is charging the right amount for your insurance coverage. Nowadays, insurers are improving in this area.

However, what you mentioned about making false insurance claims is disturbing. Not only is it wrong, but it’s also illegal—and a sure way to break up your friendship. Insurers today are better than ever at predicting which claims may be dodgy. Sooner or later they will catch your fraudulent claims. Do cease with this practice immediately.

– Annie Analytics

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