India's largest platform and marketplace for GCCs & AI

Sign in

India's largest platform and marketplace for GCCs & AI

3AI Digital Library

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 AI on Data Anonymization

    Featured Article: Author: Mohan Khilariwal, DGM, Data Engineering, Analytics and Data Science, HCL Technologies Data anonymization has become much more critical as we are into the era where data sharing is becoming a necessity in order to serve the customer, new business opportunities, Governments want to take help from the industry to serve its people […]

  • TransUnion Expands Global Capability Centers in India and South Africa

    Centers in India and South Africa to support global organization and local markets CHICAGO, Feb. 22, 2021 (GLOBE NEWSWIRE) — As TransUnion (NYSE: TRU) continues to evolve and modernize its approach to business, the company announced expansion of its existing Global Capability Center in Chennai to Pune, India and establishment of a new Global Capability […]

  • SolarWinds cyber attack: Catalyst to rethink Federal Cybersecurity

    Federal chief information officers and chief information security officers didn’t get a lot of sleep last week, and may not for the foreseeable future. CIOs and CISOs have spent a long week trying to get a handle on the impact on their networks, systems and data from the SolarWinds cyber attack. After the Department of Homeland […]

  • The Evolution of Generative AI and Human Creativity: Ethical Concerns and Future Perspectives

    Featured Article Author: Bhabani Chatterjee, Capgemini Invent Generative AI revolutionized notions of creativity — in manufacturing, product design, content creation, and problem-solving across various domains. These advancements not only push human invention further but also open up a new world for enterprises and individuals. Of course, ethical implications abound, but the excitement is undeniable. The […]