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USE CASE

Customer Retention

AI Helps Retain Valuable Insurance Customers

Challenges

It is widely known in the Insurance industry that retaining a customer is much more cost effective than acquiring a new one. More importantly, high value customers often have a portfolio of products including multiple policies making them even more painful to lose. Simple churn analysis uses rules based on known behaviors to identify potential churn risks. Rules-based systems, however, are inflexible and miss many customers who leave and generate false positives that end up giving expensive incentives to customers who do not need them.

Opportunity

AI is a great solution for customer churn prediction as the problem involves complex data over time and interactions between different customer behaviors that can be difficult for people to identify. AI can look at a variety of data, including new data sources, and at relatively complex interactions between behaviors and compared to individual history to determine risk. AI can also be used to recommend the best offer that will most likely retain a valuable customer. In addition, AI can identify the reasons why a customer is at risk and allow insurance company to act against those areas for the individual customer and more globally.

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Why H2O.ai

The mission at H2O.ai is to democratize AI for all so that more people across industries can use the power of AI to solve business and social challenges. The insurance industry is a key focus for the company with leading insurance companies including Progressive, TransAmerica, Aegon, Zurich Insurance helping to drive significant product innovation. H2O Driverless AI is an award-winning platform for automatic machine learning that empowers data science teams to scale by dramatically increasing the speed to develop highly accurate predictive models. Driverless AI includes innovative features of particular interest to insurance companies including machine learning interpretability (MLI), reason codes for individual predictions, and automatic time series modeling.

Related Case Studies

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The ability to do advanced analytics and do more work across the data is going to be the differentiator for insurance companies going forward.”

Conner Jensen, Analytics Program Director, Zurich Insurance
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With H2O we are able to build many models in a much shorter period of time.”

Pawan Divakarla, Data and Analytics Business Leader, Progressive

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