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.
- 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.
- 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.