Challenge

A Insurance company wanted to identify ways to reduce it’s customer churn rate across all line of businesses(LOBS).

The personal line of business (LOB) and commercial line of business (LOB) have a customer retention rate of approximately 86% and 76% respectively.

Our Role

• Assessed business value to be derived from analytics effort.
• Examined billing and claims data from 2011 – 2014.
• Developed a statistical analysis model to identify patterns.
• Developed a predictive model utilizing decision tree methodology to identify customers.

Insights

• Discovered most customer churn is in personal insurance line of business where customers who do not pay through EFT are most likely to leave.
• Analysis uncovered ways for Farmers’ to retain up to 5% of its customers, which will help to generate up to $6M in revenue per year.