India's largest platform and marketplace for AI & Analytics leaders & professionals

Sign in

India's largest platform and marketplace for AI & Analytics leaders & professionals
Become a Thought Leader
Become a 3AI Member

Sign in

3AI Digital Library

< Go Back

Customer retention

3AI August 18, 2020

Leading Life Insurance Company in China and Hong Kong

Problem Statement

  • losing out on premium due to rider and policies lapsation.
  • Overall lapsation of 16% in China and 13% in Hong Kong

Analytics Led Approach

  • It was observed attrition trends in the data over the years and an approach was formulated to provide a solution to contain further revenue leakage
  • Predictive attrition model was built to predict the propensity of policies to attrite
  •  
  • Given are high level process steps which were followed :
    • Data Load Exploration
    • Model variable Creation
    • Analytical Model Development
    • Business rules
    • possible provider frauds

Business Impact

  • Identified policy to rider relations and their lapsation pattern
  • Customized retention engine to fit survival model outputs
  • Advanced analytical algorithms were used to develop predictive models .
  • Provided list of customers based on the policy at risk of attrition for follow up and retain.

Critical Success Factors

  • Identified attrition and revival opportunity of worth US $ 10 MN and $ 6 MN for China and Hong Kong respectively

    3AI Trending Articles

  • ADKAR – Driving Behavioural Change for Smoother AI Adoption

    Featured Article: Author: Abhishek Tandon, LTIMindtree As mentioned in chapter 1, AI projects generally suffer from abandonment because they are left at the point of execution and not thought through from a consumption perspective. One of the key reasons for that is lack of understanding of the “bigger picture” that ends up causing a lot […]

  • Human Behavior & Human Data: Beyond Big Data

    In recent years, there has been a lot of hype around “big” data in the marketing world. Big data is extremely helpful with gathering quantitative information about new trends, behaviors and preferences, so it’s no wonder companies invest a lot of time and money sifting through and analyzing massive sets of data. However, what big data fails […]

  • RBI provides new set of guidelines for the Digital Banking and Payments ecosystem

    The master direction on digital payment security controls, released last week, casts a wide net. The skyrocketing of online transactions in the country—Covid-19 has provided no small impetus, with the amount transacted via UPI doubling in January 2021, at Rs 4.3 lakh crore, from lasts year’s Rs 2.1 lakh crore—calls for fortifying cybersecurity in the […]

  • How Artificial Intelligence technology is transforming Retail

    Featured Article: Author: Joginder Chhabra, DS Group Retailing Industry worldwide including India is going significant transformation with increased focus on e commerce and hybrid retail business models since last decade. The new age retailers are increasingly strategizing to engage shoppers directly due to which the traditional business models adopted by retailers are under significant pressure. […]