Powerlytics Improves Marketing, Customer Retention Models, and Agent Hiring Decisions for Top-5 Life Insurance Company

Business Wire

DOYLESTOWN, Pa.--(BUSINESS WIRE)-- One of the largest life insurance companies in the U.S. has selected Powerlytics to improve its direct marketing, policy lapse, and agent hiring models. Under the deal, Powerlytics will provide data that augments and improves the life insurance company’s ability to attract and retain new business policyholders, and identify successful insurance agents.

“Powerlytics data has consistently displayed the ability to add lift to companies’ customer focused marketing models. The predictive nature of Powerlytics comprehensive financial profile of over 200 million adults has been proven to accurately identify customers that are best positioned for various products,” said Kevin Sheetz CEO of Powerlytics. “However, this is the first time a client has used our data to correlate prospective employee performance to improve hiring decisions. It’s exciting to work with innovative companies leveraging our data in new and powerful ways.”

The firm also anticipates it will use the data to improve other areas, such as underwriting and has indicated that it will explore ways the data can further improve the accuracy of its marketing and risk based models.

Using the Powerlytics data, which includes hundreds of variables, the firm saw immediate lift in the following models:

Direct Marketing: Direct marketing is a common approach used by life insurance companies to acquire new customers. Using Powerlytics’ variables, life insurance companies can determine the financial characteristics of a prospect that is most likely to respond to information about life insurance and annuity products. Equipped with this knowledge, life insurance companies can then market to the entire U.S. population of prospects that fit these financial criteria, resulting in an improved marketing response rate and optimized marketing budget.

Policy Lapse: A life insurance policy is at its greatest risk for lapse in the first year following policy issuance. Powerlytics data has been found to be highly predictive in identifying which policies are likely to lapse. By better identifying these at-risk policyholders upon policy issuance, insurers can implement strategies to reduce their overall lapse rate.

Human Resources Pre-Hire: Life insurance companies spend a significant amount of resources recruiting, hiring, and training agents. They do everything possible to ensure that their agents succeed, but unfortunately, the four-year retention rate for insurance agents can be as low as 13 percent. In their testing of Powerlytics data, this top five life insurance company found the data to be predictive of the likelihood an agent will succeed, prior to hiring. This additional knowledge supports their hiring decisions, as well as creates significant savings in recruiting, training, and agent ramp up with the reduced turnover.

Powerlytics has been retained by leading financial services companies to provide data that improves in-house and third-party marketing and risk models targeting both consumers and businesses. In addition to its comprehensive data, Powerlytics offers a variety of products such as its income verification tool, Powerlytics True Income, which allows lenders to predict applicants’ income based on their nine-digit zip code. True Income evaluates an applicant’s stated income, and assigns a confidence score to that claim. It also accurately predicts a consumer’s or business’s income and can help better understand the risk of default.

For more on Powerlytics tools, visit www.powerlytics.com.

About Powerlytics

Powerlytics provides the most comprehensive, accurate and granular consumer and business financial data available in the U.S. Our proprietary big data analytics platform analyzes anonymized financial information from publicly available U.S. government sources and reconstructs it into easily understood financial statements that provide a comprehensive financial view of the over 200 million adults and 30 million businesses that comprise the American economy. Major U.S. corporations and financial services providers are using Powerlytics’ data to manage risk, discover potential markets, drive corporate strategy, develop digital marketing campaigns, benchmark performance, enhance both business and consumer target marketing, and stay on the cutting edge with predictive analytics. Visit http://blog.powerlytics.com/ or www.powerlytics.com for more information.