Introduction
Persistency refers to the process of policy retention by consumers and the continuous renewal of policies year on year by paying instalments of premium at specific pre-determined intervals after the initial premium. Once active, a policy is assigned to a specific branch based on the zone and region where it was issued. Branch persistency deals with the % of people renewing their policies on an annual basis to maximize targets set for branches.
A prominent Life Insurance client creates a consolidated policy details file for due policies at a branch level monthly. This dataset is used to create branch, region and zone level dashboards for daily tracking of % of targets achieved and strike rate % which are integral in assessing the performance and efficiency of branches.
These daily reports reflect the expected monthly dues, the target set for a particular branch and the % of the target achieved as well as the % of total expected dues collected. These reports highlight the branches that have a below-average achieved % and strike rate so that measures can be taken to improve the performance of these branches.
Challenge
- These dashboards are created and mailed to the Branch heads daily. The timely and accurate calculation and tracking of these performance metrics is a difficult task.
- The complexity of the dashboards combined with the processing of the huge set of raw data makes the whole process prone to manual errors.
Methodology
- Mapping of monthly targets basis zone, region, and the branch to the consolidated file containing details of due policies.
- Identification of policies whose premium was collected daily.
- Creation of zone, region, and branch level dashboards to display metrics as total dues expected, target set, dues collected, target achieved %, and strike rate %.
- Storage of premium payment(revival) history of policies daily.
- Mail notifications to Branch heads of underperforming branches.
Impact of SheetKraft
- Maintenance of a centralized database of premium payment data.
- The system has driven a fast and accurate generation of performance dashboards.
- Identification of underperforming branches and daily notification to the respective branch heads.
- Reduction in manual effort from >3 hours/day to <3 mins/day.
