How a Global Insurance Brand Decreased
their Cancellation Rates by 1.5%

 

The Challenge

Challenge

The organization was experiencing above normal mid-term cancellation rates for particular policies, and wanted to reduce these rates by developing a predictive model.

Solution

The company used KnowledgeSTUDIO™ to develop a model that successfully predicted the cancellation of home insurance policies and was able to analyze historical customer data.

Results

The insurance brand saw a significant reduction in cancellation rates, and is now using their model on a monthly basis.

The Company

This leading global insurance brand has been running since the 18th century, employing over 160,000 people and serving over 100 million customers.

The Challenge

Due to higher than normal mid-term cancellations of home insurance policies, the company wanted to:

  • Develop a model that predicted the cancellation of its mid-term policy looking at 14 days after inception and 28 days before renewal on a segmented dataset
  • Test and refine this model to ensure its accuracy

The company sought to utilize this predictive model to minimize two critical variables to the company’s success: customer churn and risk.

The Solution

This company successfully created a model using Angoss KnowledgeSTUDIO™ to predict the cancellation of home insurance policies. The company was able to:

  • Target the top 2.5% of customers who were most likely to churn
  • Include countrywide insurance policy data such as premiums, product types, payment methods, age of policy, and demographics of policy holders
  • Score data on a 3 month test basis before implementing them

By examining customer data, the company defined the right criteria and messaging mix to improve customer retention and loyalty.

The Result

The company conducted a test with a controlled group to ensure the model created in KnowledgeSTUDIO is correctly predicting the higher levels of propensity to cancel. Results were compared to non controlled data to see if being contacted versus not being contacted made a difference and saw notable results, including:

This global insurance brand is now using their model to improve customer retention and loyalty on a monthly basis.

“KnowledgeSTUDIO helped us leverage our customer data and identify key insights that led to minimized customer churn and risk.”

– VP Marketing

 

About KnowledgeSTUDIO™

KnowledgeSTUDIO™, part of the predictive analytics suite of products, is an advanced analytics, modelling and data mining workbench. It delivers a robust set of capabilities for the development and deployment of data mining models for a wide range of applications and use cases. Users benefit from an intuitive, wizard-driven interface with Angoss patented Decision Trees and unique Strategy Trees at its core.

Unlock the valuable customer intelligence in your data. Speak to one of our product specialists now.

 

Back to case studies