Problem

Canceled customers due to non-payment can not buy another policy until 12 months after their reinstatement window has closed. During this period, even if these users want to bind another policy (commit to insurance coverage), they cannot do so. Additionally, these users have no way of paying off their uncollected premium.

Why

Users show interest in returning to Root. Based on historical data, 50% of canceled customers return to the app and interact with the payments, policy, or in-app support scenes 180+ days beyond their 15-day reinstatement window. We found that 10% of these users created support tickets related to billing, reinstatement, and new policies during this same period.

Solution

Enable these users to return to Root immediately after their reinstatement window closes. Eliminate the waiting period and require these users to pay off their past uncollected premium.

Hypothesis

By enabling this functionality, we hypothesize that users will choose to get another policy with Root sooner, which could drive $20M in increased premium and improve policy lifetime expectancy by 3%.

Testing

For the rollout of this feature, we ran an A/B test to determine whether or not having the explainer screen disclosing the uncollected premium at the beginning (variant A) or towards the end (variant B) of the flow would be more effective at conversion.

Outcome

Our 6-month test concluded that variant A was more successful. Collectively, the test resulted in over 16,000 policy binds and $13M in premium.