Case Study: a leading tier-one annuity provider reduces surrender rates and unlocks lifetime value with EXL predictive analytics

Leading Tier-one Annuity Provider unlocks $5 billion in lifetime value with EXL

A leading tier-one annuity provider faced a significant challenge with a 70% surrender rate upon the expiration of surrender fee periods, threatening its financial stability and $50 billion in assets under management. To combat this asset leakage and high customer churn, the provider partnered with EXL to leverage its advanced AI and predictive analytics services.

EXL developed a customized, analytics-driven strategy that utilized predictive modeling to forecast surrenders months in advance, enabling proactive intervention. This solution allowed for the creation of tailored retention programs and provided actionable insights. The results were transformational, unlocking a $5 billion lifetime value opportunity with models that were 10x more accurate than the client's previous versions and at a cost 8-10x cheaper than traditional asset acquisition methods.