Client challenge
The client was struggling to strike the right balance between offering flexible payment options and managing the financial risk associated with customer non-payment. Their existing payment model lacked sophistication and relied on a one-size-fits-all approach, which exposed the business to unnecessary risk and limited their ability to tailor payment plans to individual customer profiles. This not only impacted revenue predictability but also hindered customer satisfaction and renewal rates.
Solution
As part of the Overall project, ACINI built a new system for assessing the risk of payment defaults leveraging customer data retrieved from PolicyCenter. Acini replaced a simple mathematical model, with a solution that used customer data and historical models to categorize the risk into three payment options for new business and renewals.
- Low risk – customers can pay monthly, with no additional fees.
- Medium risk – customers can also pay monthly, but with an additional fee applied.
- High risk – customers are limited to annual payments only.
This model not only helps manage financial risk but also improves transparency and provides customers with options suited to their situation. As a result, the customer observed a clear increase in the number of policy renewals, indicating stronger customer loyalty driven by flexible payment options. In parallel with the introduction of the risk assessment model, we implemented a new version of their payment system which supported credit card payment system. We integrated with the updated services, which allowed us to ensure full compliance with the latest standards,
Results
By combining risk-based payment options with a modernized credit card integration, we created a solution that not only reduces financial risk but also enhances customer trust and loyalty. This approach provides greater flexibility for clients, ensures compliance with evolving payment standards, and strengthens long-term customer relationships through higher policy renewal rates. The customer saw improved customer metrics in both new business and renewals while reducing their risk.