Customer Retention and Revival

3AI August 16, 2020

Leading Life Insurance Company In India

Problem Statement

• An overall lapse rate of 60% especially in policies issued, challenge was in retaining specific high valued customers and optimization of retention activity
• Also an intention to integrate the customer acquisition system and retention processes into analytics.

Analytics Led Approach

• Thorough analysis of customer and policy information (along with other data), to provide clear directions and actions for controlling attrition
• Given are high level process steps which were followed :
  • Data Exploration – Combining Policy; Customer; Prospect and Agent Data
  • Data processing and Variable Selection
  • Analytical Model Development
  • Model Output
  • Reports & Insights

Business Impact

• A 360degree view of the risk that is being underwritten (mortality & morbidity risk, early claim & attrition risk, money laundering risk) was developed
• Utilities for agents to identify the right products to recommend to the customers based on the 360-degree view of the risk even before UW process starts was designed

Critical Success Factors

• Revived 3.5% of the value in a month of actual implementation
• Brought back 4.5% of the lapsed customers