This is a Recording

Automated messages phoned to policyholders with overdue billshave improved retention of customers for a personal autocarrier.

What parent hasnt told a teenage victim of unrequited love therealways are more fish in the sea? Insurance carriers often havetaken the same concept to heart in relationships withpolicyholdersif a customer stopped paying premiums, the insurersimply would sell a policy to someone else.

Carriers eventually learned there are more profits in retainingcustomers than in trying to attract new ones. That is one reasonauto insurer Unitrin Direct turned to EnvoyWorldWide and itsEnvoyConnect system to provide payment reminders to policyholders,particularly when policies have reached a past-due status or arenearing renewal.

As a direct-to-consumer auto insurer, persistency and retentionare very important to us, says Brian Crumbaker, senior vicepresident of claims and operations for Unitrin Direct. We noticedwe were getting a fair amount of nonpay cancellationsthe people whojust forget to pay their billsand saw a case study where anotherinsurer was getting some pretty fair results on retention.

Crumbaker was familiar with the insurer using the EnvoyConnectproduct. He felt so good about the product that Unitrin Directbypassed the normal selection process and licensed the system lastSeptember. This is one of the few things for which we did not goout and get competitive bids because the cost to implement was soinsignificant, says Crumbaker. We felt this was going to be a solidinvestment for us, and we wanted to do something very quickly. Thisis one of the few instances where we took a bit of a leap infaith.

EnvoyWorldWide was knowledgeable in the type of campaign thatUnitrin Direct wished to run, according to WilmaRichardson-Tidwell, director of special projects for UnitrinDirect. The payment reminder was similar to what EnvoyWorldWide haddone with other insurers, she says.

Unitrin Direct developed a script that was recorded to bedelivered to policyholders who had failed to pay their premiumswithin a certain time frame after the due date, explainsRichardson-Tidwell. The messages give the customers options. If aperson answers, we give an option to transfer straight into ourinteractive voice response (IVR) system, where he or she can make apayment immediately, she says.

Another benefit of the product is when the call is placed, therecipient has options before the script is read, including puttingthe call on hold so that the appropriate recipient can get on theline, or if that person is busy, a call-back can be requested, addsRichardson-Tidwell.

The product has a Web interface that allows the carrier toimport the data on the customers who need to be called. Once[EnvoyWorldWide] sets up the template, we are in complete controlof the campaign, says Richardson-Tidwell. Thats the route wewanted. The system also allows Unitrin Direct to set up callingwindows.

Unitrin Direct asserts retention is an important point ingauging the success of the system. The measure we use is whetherthe policy stays with us through the entire policy period, saysCrumbaker. We sell 12-month policies, so we were looking at howmany policies actually make it to the 12th month. Retention is howmany of those policies actually decide to renew with us for month13.

Crumbaker is pleased with the payback thus far. There are tonsof things you can do with [the system], he says. Were makingcall-outs for state-required forms. Were removing the need forclerical [staff] to type a letter or make a call themselves. Thatsall been automated now.

Crumbaker also plans to use the system to contact policyholdersin Florida if the insured property is in the path of a hurricane.Another possible use is to make automated outbound sales calls. Ifthat works, it will be quite a productivity enhancement for us, hesays.

Crumbaker is thrilled with how the system has worked. My onlyhesitation in giving interviews is I truly feel this is acompetitive advantage, he says. Its given us a nice little boost.ROBERT REGIS HYLE

Case File
THE PROBLEM
Carrier needed to deliver automated,
personalized messages to policyholders.

THE CARRIER
Unitrin Direct
Web Site: www.unitrindirect.com
Earned Premium: $180 million

THE SOLUTION
EnvoyConnect from
EnvoyWorldWide, Inc.
Web Site: www.envoyworldwide.com