SUCCESS STORY / IMPROVING COLLECTIONS EFFICIENCY

 Business Challenge
Business Challenge
Client is a leading life insurance carrier, subsidiary of a Fortune 100 Insurance company headquartered out of Europe. Client was faced with a high rate of lapsation on their policy base, resulting in revenue leakage and sub-optimal collections process. LatentView proposed an analytics solution that identifies high risk customers and target them for appropriate collections treatment
 LatentView Solution
LatentView Solution
LatentView adopted a three-staged approach to developing the solution:
Explore.  Uncover various drivers of lapsation through exploratory analysis
Predict.  A risk score that estimates the probability of lapsation for each policy
Optimize.  Identify optimal decision strategies through controlled experiments
 Benefits to the Client
LatentView Solution Benefits
Reduced Lapse Rate.  Within 6 months, client witnessed significant reduction in lapsation rate, from 15% to 12%, attributed to the solution
Improved Collector Productivity.  Shift focus to collecting more from high value customers who are at risk of lapsation
Proactive Approach.  Reduces risk and improves customer satisfaction