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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

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