How to increase customer retention in insurance

The insurance landscape has changed dramatically. It used to be the collective norm for customers to call an insurance broker to find their best insurance policy. Today, however, most consumers head straight to comparison websites like Compare the Market or Money Supermarket (in the UK) or Insurify (in the US) to get multiple quotes in minutes. This shift to aggregators—combined with the rise of digital-first platforms like Ripe, Policy Expert, and Urban Jungle—has left some traditional brokers struggling to maintain customer relationships and, more critically, retain customers at renewal. 

So, how can brokers navigate this digital age and retain their customer base? The answer lies in embracing technology, leveraging data, and focusing on a winning personalised service. 

The challenge: losing relationships and margin pressure 

The core issue for some brokers, particularly those dealing in personal lines insurance, is that customers are becoming increasingly price-obsessed. Many no longer prioritise service, advice, or tailored coverage—they simply want the cheapest option. When customers purchase through aggregators, brokers often lose the opportunity to add value by advising whether the policy is truly right for them. 

When policies are purchased via aggregators, the customer often has no idea which broker arranged their policy. This anonymity weakens the relationship, making it harder for brokers to retain customers when renewal time comes around. Some brokers claim that 90% of their net new business comes through aggregators. However, like many personal lines brokers relying on this channel, the cost of acquiring new customers often exceeds the first-year earnings, meaning renewals are critical for long-term profitability. Without a strong retention strategy, brokers risk operating at a loss on new customers before ever seeing a return.  

This intense pressure to retain customers makes data and analytics crucial. Predicting churn and personalising retention strategies can be the difference between a one-off sale and a loyal, long-term customer. 

The opportunity: Personalised service and niche expertise 

Many consumers prefer digital-first platforms that promise fast, hassle-free service. For brokers, the gap between traditional methods and digital-first competitors is widening rapidly. 

However, there is hope. Brokers can still differentiate themselves by providing personalised service and niche expertise—offering solutions that automated platforms cannot. 

What can brokers do? 

Enhance customer experience: Long, complex forms are a turn-off. Brokers can improve customer experience by building intuitive, self-service portals. This not only reduces friction during the initial sale but also makes renewals easier and more likely. 

Use aggregators strategically: Instead of viewing aggregators as competition, brokers can treat them as a lead generation tool. Policy Expert exemplifies this approach. While they acquire customers via aggregators, they retain them by offering exceptional customer service and operating a hybrid model where they control pricing and underwriting. 

Key takeaways for insurance brokers 

Traditional brokers can often face three core challenges: 

• They struggle to compete on price with aggregators. 

• Brokers using aggregator-driven models face challenges in maintaining brand recall, as customers often interact more with the insurer at claim than the broker who placed the policy. 

• Most importantly, they fail to retain customers when renewal time arrives. 

The solution lies in a multi-faceted approach: 

• Leverage aggregators for lead generation and prioritise personalised service to retain customers. Brokers who actively engage with policyholders through online portals or mobile apps can strengthen brand connection by sending in-app notifications with helpful advice, support, or exclusive deals across product lines. Offering multiple self-service channels significantly boosts customer retention—customers who use an insurance portal are proven to be less likely to cancel their policies compared to those who do not.  

• Invest in digital capabilities to provide easy access to policies and self-service options, reducing churn.  

• Predicting and preventing churn – Use AI-powered churn prediction models to flag at-risk customers and engage early.  

• Own the customer relationship – build branded customer portals and apps to increase engagement before renewal.  Behavioural data studies often find that a consistent omnichannel experience can increase policy retention, while a single channel, like a customer portal, boosts retention — integrated, multichannel experiences deliver the greatest impact on customer loyalty. 

• Enhance both digital and human touchpoints with AI-powered role-based assistants. While digital-first platforms prioritise automation, some customers will still prefer speaking to a human being. Brokers can differentiate by seamlessly integrating AI-powered role-based assistants to augment human agents in contact centres. These assistants provide real-time recommendations, automate routine inquiries, and enhance personalisation; ensuring that customers receive efficient, tech-enabled yet human-driven support across both digital and voice channels. This allows brokers to steal a march on competitors that can’t offer both seamless phone service and digital convenience.  

How NashTech can help 

NashTech is a leading technology solutions provider with a proven track record in the insurance industry. Trusted by brokers, MGAs and insurTechs globally, we understand the specific challenges faced by personal lines brokers from high churn rates and price driven customers to the need for better digital engagement. Our tailored solutions help brokers increase renewal rates, reduce customer churn and improve digital self-service adoption, all while lowering the cost per acquisition through: 

• Cloud-based platforms: NashTech helps brokers move to flexible, scalable cloud-based infrastructure.  

• Customer data and engagement: unified customer data across PAS, CRM and self-service portals enables targeted retention campaigns  

• Enhancing customer experience and self-serve:  

• Customer portals and mobile apps reduce churn by offering self-service MTAs, policy renewals and document access.  

• Automated renewal reminders – email, SMS, in app notifications to keep customers engaged ahead of renewal  

• Churn prediction models – AI identifies at risk customers before renewal enabling proactive engagement  

• Dynamic cross selling – personalised add on recommendations (breakdown cover, legal protection etc.) at the right time 

Process automation:  

• MTA automation – customers can make policy changes instantly without calling  

• Claims routing and digital FNOL – Automated claims processing improves retention rates 

At Swinton, Carole Nash, and Marmalade to name a few, we provide the solutions to help them thrive in the digital age.  

• Self-service and customer portals: We enable brokers to own the customer relationship beyond the initial sale by offering seamless, user-friendly portals. 

• Aggregator integration: We ensure a smooth ‘quote and buy’ data flow from comparison sites like Compare the Market directly into broker systems, simplifying operations and improving customer experience. 

• AI-powered retention and pricing: We've developed a churn prediction model that uses customer data to identify renewal likelihood. This data-driven approach allows brokers to personalise and automate renewal pricing, increasing retention rates. 

Speak to us today to see how we can help support your customer retention strategies.