A leading insurance provider in the US was experiencing high attrition rates, with (i) 4% churn on 14 million customers; and (ii) ~$157 million in annual loses due to attrition. The provider was looking to mitigate this problem by proactively identifying a higher proportion of policyholders at risk of attrition and understand the causes behind it.
DemystData identified the 100 most predictive attributes, and using those external variables, tested the same group of policyholders at a three-month interval prior to their six-month insurance policies coming to an end. DemystData also identified the categories of attributes and types of changes most likely to predict churn customers.
- The insurance provider was able to identify an additional 32,000 customers likely to churn.
- It was further estimated that up to US$13.9 million in annual benefit could be generated for this provider using this solution.