India's largest platform and marketplace for GCCs & AI

Sign in

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

Sign in

3AI Digital Library

< Go Back

Minimizing Policy Attrition

3AI August 16, 2020

Leading Life Insurance Company In Japan

Problem Statement

  • A high attrition in the customer base due to competition and miss-selling (45% is overall lapse rate)
  • Expectation was to build an approach to retain policies and to set up an early warning system to identify a potential attrition cases to prevent further revenue leakage

Analytics Led Approach

  • Attrition trends in the data over the years were analyzed and an approach was designed 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

Business Impact

  • Raw data was mined, and a methodology was built for developing a predictive attrition model to provide a probability score to influence the decisions to follow the case by the customer.
  • Model output was segmented to optimize the approach to follow the case and provided insights to treat each policy based on the segmented matrix Re-evaluate;Retain;Grow;Protect– for example, Retain is the quadrant high value and high risky policy, retaining such policies will optimize the effort as well as cost
  • Primary users, retention team were provided with insights for customer retention..

Critical Success Factors

  • 20% of the in-force portfolio has been identified with 69% of the premium to be at risk of attrition (Approx. $ 1.3 BN premium at risk)
  • Formulated a growth strategy to retain existing customers as well as grow their business
  • Integrated attrition prediction with every customer touch point system through a web service

    3AI Trending Articles

  • Transforming Enterprises with a Generative AI Strategy

    Featured Article: Author:  Vijay Morampudi, Director, Wavelabs Technologies Generative AI has the potential to revolutionize industries as a whole. As a leader, it is crucial tocreate an effective generative AI strategy for your enterprise to stay competitive and take advantageof the technological advancementsThis article presents seven practical steps that can be followed to create a […]

  • Saudi Arabia to get Google Cloud services: Saudi Aramco

    Saudi Arabia, under its Vision 2030 reform plans, has encouraged foreign investment particularly in the technology sector and courted Silicon Valley players. Saudi Aramco Development Co, a subsidiary of Aramco, has teamed up with Google Cloud to offer cloud services to customers in Saudi Arabia, Aramco said on Monday. Saudi Arabia, under its Vision 2030 […]

  • PoS Terminals Open Consumers to Fraud

    Point-of-sale terminal vendors Verifone and Ingenico have issued mitigations after researchers found the devices use default passwords. Point-of-sale terminal vendors Verifone and Ingenico have issued mitigations after researchers found the devices use default passwords. Researchers are detailing widespread security issues in point-of-sale (PoS) terminals – specifically, three terminal device families manufactured by vendors Verifone and […]

  • Blockchain Powered Smartphones by Fesschain

    Firm has tied up with a private manufacturer that can produce 10,000 pieces a day. But Fesschain is now scouting for a suitable location in Noida to set up its own production unit Homegrown blockchain technology company Fesschain is targetting almost 10 shipments of its smartphones in the next 6-12 months. The company, which has recently entered mobile handset […]