Client: Leading insurance

company
Industry: Financial Services
Business Impact:
Comprehensive analysis
Account restoraton
Improved ROI
www.blueoceanmi.com
Leveraging an insurance customer retrieval solution to
reactivate lapsed accounts
Business Challenge
The client faced an immediate challenge of accessing lapsed insurance policies
with a potental of repayment within a specifc tme bracket. By identfying these
accounts, the company can focus on their reactvaton, which will result in an
additonal fow of revenue.
The client was witnessing revenue loss and hence wanted to reactvate the lapsed
insurance policies. However, while doing this, they wanted to ensure that the
strategy is resultng in minimum wastage of money and efort.
Soluton
Blueocean Market Intelligence customized the insurance customer retrieval
soluton to address this partcular problem. The two policies namely, Traditonal
and ULIP, were in two states - Inforce and Lapsed.
As a frst step, the lapsed policies, having the potental of repayment by
invoking inforce (customers with a payment profle > three years) atributes on
the defaulted policies, were accessed
A binary logistc regression was utlised on lapsed and inforce datasets and a
KS cutof was decided based on the model results afer which confusion matrix
was built consistng of all the four wells
The error pertaining to two wells in the matrix told about the reinforcement of
atributes of inforce on lapsed policies and vice-versa
Case
Study
Factors like premium to be paid, income of the policy holder,
occupaton and the total sum assured at the end of maturity
were found to be greatly afectng the model results. The
confusion matrix shows a pictorial representaton of the
hypothesis used, where in 2827 and 8435 policies can be
possibly retained in traditonal and ULIP plans respectvely.
The above table also gives us the percentage correctness of
the model, 74.9% and 64.7% for Traditonal and ULIP policies
respectvely.
Outcome
Factors that afected the predictve model were identfed
as:
Premium to be paid
Income of the policy holder
Occupaton and the total sum assured at the end of
maturity
The study suggested it is always good to approach the
lapsed policies within a specifed tme bracket afer which
the policies may get permanently lapsed. Based on our
analysis, approximately 11,000 policies have been targeted
from a portolio of 50,000 and 8,000 have been successfully
repossessed.
Predicted
Lapsed
Actual
Lapsed 14478 8435
304 1410
Inforce
Inforce
ULIP Policies Result
Predicted
Lapsed
Actual
Lapsed 7171 2827
235 1998
Inforce
Inforce
Traditional Policies Result
About Blueocean Market Intelligence
Blueocean Market Intelligence is a global analytcs
and insights provider that helps corporatons realize
a 360-degree view of their customers through data
integraton and a mult-disciplinary approach that
enables sound, data-driven business decisions.
Since we live in a highly dynamic and mult-
dimensional world, we believe the most efectve
business decisions come from a synthesis of data
streams and not from one-dimensional sources.
Using our 360 Discovery approach, we ensure the
comprehensive use of all available structured and
unstructured data sources, enabling us to bring
the best to bear against each engagement. Strong
decision support is enabled through a combinaton
of analytcs, domain expertse, engineering and
visualizaton skills brought together in harmony.
Leading companies have benefted from our
partnership with fnancial growth, 360 views of their
markets and competton, and improved customer
acquisiton, satsfacton and retenton.
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