HomeNews & IdeasPerspectivesHow much is that aggregator earning you

How much is that aggregator earning you

Many financial institutions use on line customer aggregators as part of their distribution mix. The appeal is obvious: aggregators deliver customers who are ready to purchase for a fee per customer. It’s then the carrier’s responsibility to close the business.

But how much is one of this customers? Worth? At it’s simplest, they are worth the net revenue per customer less the cost of conversion and the cost of the aggregator. But P ‘n C insurance isn’t that simple, because the net revenue calculation includes a significant increment of premium and claims fraud. If the fraud is higher than assumed, then the lead is worth less, maybe even unprofitable. But it’s hard to tell whether or not there is fraud up front – aggregators deliver a certain amount of data – some more – some less and carriers have very little time to decide whether or not to buy.


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