August 18, 2020
Leading Life Insurance Company in China and Hong Kong
- 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
- 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