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

Sign in

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

  • Impact of C19 on upskilling and Edtech

    After nearly one year under lockdown, here is how the coronavirus pandemic has impacted the upskilling and edtech platforms across the country. . Overnight in March 2020, COVID19 forced employees and companies to change the way they worked and lived. Regardless of job role, this situation transformed the way every working professional went about their […]

  • JPMorgan Completes Live Intraday Repo Transaction using Blockchain

    IBM-Launches-New-Blockchain-Project-Collaborating-with-Big-Firms

    Investment bank JPMorgan says it has completed a live intraday repo transaction using a blockchain solution that will soon see a commercial launch. The repo trade was carried out between JPMorgan’s broker-dealer and banking entity, the bank announced Thursday. The blockchain application used was developed in-house by the bank’s blockchain business arm, Onyx, and is said to […]

  • Property Registration in Karnataka to use Blockchain Technology

    Property registration in Karnataka is all set to become more secure and hassle-free, with the state government developing a system based on blockchain technology for online property documentation. The new system, developed in collaboration with IIT-Kanpur, promises an immutable electronic storage of property data through blockchain. In other words, data once stored cannot be changed, […]

  • CES 2021 conference stress importance of security education

    Experts at the CES 2021 conference stress importance of security education The “second age” of quantum computing is poised to bring a wealth of new opportunities to the cybersecurity industry – but in order to take full advantage of these benefits, the skills gap must be closed. This was the takeaway of a discussion between […]