Customer Retention by Predicting Risk of Lapse

Lapsing policies not only represent lost future margin for Insurers, but can often be a symptom of deeper issues around target customer segments and competitiveness. In a study conducted by Bain & Company, it was found that if
there is an increase of customer retention by a company by 5% then the profit of a company can be increased to 95% [1].

For building the customer base and brand image of the company it is important for a business to maintain healthy
relationships with their existing customers who are a key marketing vehicle for any Insurer.

In this new white paper, we discuss our finding from deploying Machine Learning on a dataset of more than 70,000 policies to gain insights into predictors of policy lapse.