Customer Persistence Modelling for Insurance Firm

Customer relationship management (CRM) is a system for managing a company’s interactions with current and future policy holders. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support. CRM systems track and measure marketing campaigns over multiple networks. These systems can track customer analysis by customer clicks and sales. Places where CRM is used include call centres, heavily utilized in social media, direct mail, data storage files, banks, and customer data queries. Problem statement -Within a company's customer relationship management strategy, finding the policy holders most likely to leave is a central aspect. There arises a need for a dynamic modelling approach for predicting individual policy holders’ risk of leaving an insurance company. Churn prediction is a very powerful weapon to know soon which policy holders will abandon the company, in order to increase the degree of retention, to build a solid CRM strategy and to save acquisition costs between five and fifteen times more expensive to gain new policy holders than to retain the current ones.