The issue

  • Shrinking customer base
  • 13 legacy books and numerous policy variants causing customer and staff confusion
  • Operationally complex to manage – high cost to serve
  • Existing proposition and pricing created trigger points for customer exit
  • Customers not segmented by value
  • No differentiated renewal or save strategies
  • Not pricing for risk or maximised value retention
  • Poor customer journey: passed from function to function, advisors not empowered

What we did

Designed & executed a pricing, product and service migration of all policyholders to one new modular product

  • Developed new proposition which drove retention of high value customers and higher return from lower value customers
  • Built in upgrade/downgrade ‘right-size’ choices to mitigate competitor switching
  • Created pricing engine enabling all business to move to NCD-based policies and set renewal premiums to optimise gross margin
  • Cut expected IT lead time to launch from 12 to 3 months
  • Changed customer communications and management processes to de-risk customer disruption & loss
  • Engaged Legal and regulator on ‘automatic renewal’ plans throughout
  • Piloted the transition on 2 highest lapse-risk books to ensure error-free process and no adverse increase in lapse rates

The results

  • Exceeded the £20Mpa gross margin improvement target
  • Reduced customer loss by 25%
  • Improved operating cost ratio from 30% to 16% with greatly improved IT flexibility
  • Excellent customer and FSA feedback
  • Successfully rolled out from personal to SME & Group schemes


exceeded the gross profit margin improvement target


reduced customer loss


reduction in operating costs

An award-winning team

Curzon consulting mca finalist 2019


Contact us