The Non-Standard Auto Pioneer
Executive Summary
A growing non-standard auto insurance provider was struggling with inflexible payment systems and inconsistent renewal processes that were impacting customer retention. Their existing platform couldn't accommodate varying payment dates or streamline the renewal process, leading to customer frustration and higher lapse rates. They needed a solution that could provide payment flexibility while automating the renewal process to create a seamless, hassle-free experience for policyholders while maintaining consistent pricing between monthly premium payments and renewal offers.
Company Profile:
Industry: Non-Standard Auto Insurance
Size: Small Captive Carrier
Market Presence: Single-state
Written Premium: $45 million annually
States Served: 1 state
Lines of Business / Coverages:
Non-Standard Personal Auto
Liability Coverage
Comprehensive Coverage
Collision Coverage
Uninsured/Underinsured Motorist
Medical Payments
SR-22 Filing
Roadside Assistance
Towing and Rental
The Challenge
- Detailed exploration of the carrier's struggle with payment and renewal processes, including:
- Rigid payment schedules that didn't accommodate policyholder needs
- Inconsistent pricing between monthly payments and renewal offers
- High lapse rates due to inflexible payment options
- Manual renewal processing requiring significant staff resources
- Poor customer experience leading to retention challenges
- Limited self-service capabilities for policyholders
- Disjointed renewal workflow requiring multiple manual steps
The Solution
A Mercury Platform Implementation that included:
- "Pick Your Own Due Date" feature allowing flexible payment scheduling
- Automated alignment of monthly billings with renewal offers
- Automatic policy renewal upon payment receipt
- Streamlined renewal processing with zero underwriter intervention for qualifying policies
- Rules-based renewal underwriting validation
- Customer portal for self-service payment management
- Automated payment reminders via email and text
- Digital ID cards and policy documents
- Flexible payment options including credit/debit cards and ACH
- Integrated payment processing with real-time confirmation
- Comprehensive reporting on renewal rates and payment patterns
- Early renewal options for qualifying policyholders
Conclusion
The transformation of this non-standard auto insurer showcases how payment flexibility and automated renewals can dramatically improve customer retention and operational efficiency. By implementing Mercury's "Pick Your Own Due Date" feature and streamlining the renewal process, the carrier created a hassle-free experience that aligned with policyholders' financial schedules. This customer-centric approach resulted in significant improvements in policy retention, a reduction in payment-related lapses, and enhanced operational efficiency through automation. The success demonstrates that innovative payment solutions coupled with intelligent renewal automation can transform a fundamental challenge in non-standard auto insurance into a competitive advantage.
About Mercury Platform
The Mercury Policy and Claims Platform provides a comprehensive, end-to-end solution designed specifically for the insurance industry. With flexible architecture and modular design, Mercury adapts seamlessly to the unique requirements of non-standard auto insurance markets. The platform offers a zero-cost SaaS license with unlimited users, states, and premium volumes, making enterprise-level technology accessible to insurers of all sizes. Mercury's intuitive interface combines powerful payment flexibility, automated renewals, and customizable workflows to streamline every aspect of non-standard auto insurance operations from policy issuance to renewal. Built by a team with deep insurance industry expertise, Mercury understands the unique challenges of the non-standard auto market and delivers solutions that address real-world challenges while enabling insurance carriers to improve retention and profitability in a highly competitive marketplace.
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