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

  • Cloud Infrastructure market: Amazon, Microsoft, and Google continue to thrive

    Even in the middle of a pandemic, companies including Amazon, Microsoft, and Google continue to thrive thanks to their control over the cloud infrastructure market. When we talk about regulating big tech, the discussion usually centers on online privacy and location tracking, but we never seem to discuss the control these companies have over a vast […]

  • Transforming Healthcare with Natural Language Processing (NLP)

    Featured Article Author: Saurav Kumar, UnitedHealth Group Introduction Natural Language Processing (NLP) is a branch of artificial intelligence that focuses on the interaction between computers and humans through natural language. By enabling machines to understand, interpret, and respond to human language, NLP is revolutionizing various industries, including healthcare. In this blog, we will explore how […]

  • 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 […]

  • RBI provides new set of guidelines for the Digital Banking and Payments ecosystem

    The master direction on digital payment security controls, released last week, casts a wide net. The skyrocketing of online transactions in the country—Covid-19 has provided no small impetus, with the amount transacted via UPI doubling in January 2021, at Rs 4.3 lakh crore, from lasts year’s Rs 2.1 lakh crore—calls for fortifying cybersecurity in the […]