Stochastic analysis of lapses

The development of the Czech life insurance market has a very negative influence on a substantial increase in insurance policies lapse in the last few years. Many insurance companies are facing this problem, however, most of them usually have only limited tools to deal with this adverse trend.

We offer to create a tool for the pro-active management of insurance policies lapse.

This project contains:

  • Detailed statistical analysis of the lapse of life insurance (binary choice model – probit, logit), which result is an estimate (probability distribution)of  the expected lapse of the contract on the basis of their parameters (e.g. age, gender, frequency of payments, amount of premium, region, agent, etc.) 
  • Determination of the most important parameters together with their effect on lapses.
  • Design proposal on the base of „system of early warning“ – it means chat to monitor and how to evaluate, identification of contracts and clients with a high expected probability of cancellation, etc

If you have any questions please use the contact form below.