Lifetime Value

Client: Direct Line Group

"Some drivers – typically younger ones – are more likely to

be involved in road accidents. This makes them lower value

customers to insurers and they are charged higher premiums

as anyone who knows a new driver knows. We suggested a

new approach. By understanding the lifetime value of those

new drivers with machine learning and by segmenting the safer

prospects, we were able to bid differently on drivers that would

return a profit, and shun those who were likely to cost money in

settlement of incidents.


This was an industry-first approach (as confirmed by Google’s

Chief Search Evangelist, Nicolas Darveau-Garneau).

By factoring Lifetime Customer Value into our optimisation

decisions and the result was staggering. We found 108% more

valuable customers for Motor Insurance."