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

Leading Tier-one Annuity Provider reduces 70% surrender rates with EXL

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

EXL developed a customized analytics strategy that used predictive modeling to forecast surrenders months in advance and created tailored retention programs. This solution enabled the provider to unlock a $5 billion lifetime value opportunity, with EXL's models being 10 times more accurate than the client's previous ones and the retention strategy proving 8-10 times cheaper than traditional asset acquisition methods.