Transform Retention Strategies with Predictive Analytics

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Transform Retention Strategies with Predictive Analytics

Leverage AI and data-driven insights to significantly reduce surrender rates and uncover new lifetime value opportunities.

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Intro

Facing a staggering 70% surrender rate upon the expiration of surrender fee periods, a leading tier-one annuity provider was at risk of asset leakage and financial instability. With $50 billion in assets under management (AUM) across 600,000 policyholders, the stakes were high, and the need for a comprehensive retention strategy was urgent.

By partnering with EXL, the provider was able to harness advanced AI and predictive analytics to mitigate risks, optimize customer retention strategies, and unlock a $5 billion lifetime value opportunity.

Discover how EXL can pave the way for smarter, more effective retention strategies.

The challenge

Annuity providers face two pressing challenges that threaten financial growth and stability:

  • High surrender rates: Despite offering diverse indexed-based products, only 9% of annuity holders transitioned to other company offerings. Nearly 70% surrendered their policies once surrender periods expired.
  • Asset leakage: The financial toll of these surrenders eroded AUM and put the provider’s market position at risk.

To stabilize and grow assets under management, the annuity provider required a proactive, data-driven approach to improve retention and curb customer churn.

The solution

EXL developed and implemented a customized, analytics-driven strategy designed to address these challenges.

01
<p><strong>Predictive modeling for early intervention:</strong> Our AI models accurately forecasted surrender probabilities 3–6 months before they occurred, enabling proactive engagement with at-risk policyholders.</p>
02
<p><strong>Tailored retention programs:</strong> By determining optimal interest rates and analyzing the key drivers of surrenders—product features, market conditions, advisor influence, and life events—we helped craft personalized retention strategies.</p>
03
<p><strong>Actionable insights, delivered fast:</strong> Advanced data analytics allowed the annuity provider to target specific pain points and design programs that resonated with policyholders.</p>

Outcomes

The results of EXL’s AI-powered retention strategy were transformational for the annuity provider.

10x

<p>more accurate models than the client’s previous models.</p>

$5

<p>billion lifetime value opportunity unlocked, providing exceptional ROI.</p>

8-10x

<p>cheaper than traditional asset acquisition methods.</p>

Why EXL?

At EXL, we combine advanced AI and predictive modeling with deep industry expertise to deliver results that matter. What sets us apart?

  • Proven expertise: We’ve delivered measurable outcomes for industry leaders, translating insights into action.
  • Customized solutions: Our strategies are tailored to meet your unique requirements and challenges.
  • Cost-effective strategies: We deliver premium solutions at a fraction of the cost, ensuring maximum ROI.
  • Commitment to collaboration: We believe in true partnership, working alongside you to achieve lasting success.

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