Tower studies cure to churn in partnership with IBM, Datacom

Tower studies cure to churn in partnership with IBM, Datacom | Insurance Business New Zealand

Tower studies cure to churn in partnership with IBM, Datacom

The country’s largest homegrown tech company, Datacom, and multinational tech giant IBM have partnered with Tower Insurance on a data insights solution aiming to improve customer experience and retain customers.

With 300,000 customers across Aotearoa and the Pacific Islands and an increasingly competitive insurance industry, Tower found an opportunity for innovation in the vast amount of customer data it managed on a day-to-day basis.

To start, Tower used IBM’s Cloud Pak for Data and Datacom’s supporting infrastructure to generate a small-scale analysis of motor insurance policies as a high-turnover offering. The companies’ goal was to better understand factors driving customer experience, IBM customer success manager Ramy Amer said.

Tower picked core data points they thought were more likely to predict churn, customer experience owner Kieran Simmons said.

The project lasted six weeks and captured four years’ worth of motor insurance policy data.

“Within that six-week turnaround, we not only had a better understanding of how the model worked, but we were also able to get some valuable new insights – and this is just a drop in the bucket of what we could feed into this model,” Simmons said.

Tower is now considering how it can use the model to analyse further products and focus on more data points. It believes that a clearer picture of the causes of churn and dissatisfaction will enable them to invest in better support processes to help customers as they make decisions about their insurance cover.

"We're really proud of the work our team did on this project with Tower and IBM," said Tim Moor, product portfolio manager for the Datacom cloud team. Datacom said the partnership was a prime example of collaboration achieving efficiency, Reseller News reported.