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by frockington 2963 days ago
Probably the same reason airplanes have frequent flyer miles. If a customer has proven to be low hassle you don't want to lose them
1 comments

Yes, if it gets to the point where they've already shopped around you're going to be paying a much higher price to retain that customer, than if you simply gave them a reasonably competitive premium or deserved discount. Insurance companies are not like cable, customers are free to switch to one of many options at any time. Acquisition and churn costs are huge problems.