Insurance Lapse Prediction
"The solution helped the client in predicting the insurance cover of customers. Also, it helped in identifying the risky segment of customers at which the company shouldn’t waste its time & resources."
Customer retention is one of the biggest factors which drives a business. Be it any sector or industry, this is a factor which can help the business sustain or lead to its downfall. Insurance is one such of a sector which is entirely dependent on customer retention. If the firms are able to reactivate the policies of the customers, which are on the verge of expiry, their business will keep running on the safe track. Hence a solution was required to help the insurance firms achieve this objective.
The client is one of the biggest insurance firms in India. With more than 30 years of experience, it has expanded its roots in almost all the tier 1, tier 2 and tier 3 cities of the country. It handles the country’s largest customer base, capturing almost 60% of the market. It provides insurance policies in various verticals like health care, life term, automobile, etc. Due to rising competition in the market, the client desired to lay its emphasis on customer retention while focusing on the customer acquisition as well. To help the client achieve this objective, a cover prediction solution was developed.
Since Insurance is a diverse domain, various meetings were organized with the client to get the exact requirements on the table. After thorough discussions, the team pin pointed the key requirements as :
Identifying the ongoing policies and those on the verge of expiring.
Predicting behaviors of customers.
Predicting cover duration.
Creating a database containing data on payments, transactions, claims, credit score and financial background of all the customers.