ICICI Prudential Life Insurance leverages advanced Machine Learning models for customer benefit and better persistency

 ICICI Prudential Life Insurance leverages advanced Machine Learning models for customer benefit and better persistency • Machine Learning models built to predict future persistency behaviour of long-term savings products • 13th month persistency ratio improved from 83% at December 2021 to 85.9% at December 2022 Mumbai, February 27, 2023: ICICI Prudential Life Insurance has deployed advanced machine learning models to ensure customers continue to reap the benefits of their life insurance policies and stay on course to achieve their long-term financial goals. This digital solution predicts future persistency behaviour and has enabled the Company to improve persistency across all cohorts. Coupled with the Company's other initiatives, it has resulted in higher premium collections, enhanced productivity and improved profitability. Persistency measures the proportion of customers who continue to pay renewal premiums. In the life insurance industry, persistency ratio is an important indicator of the quality of the sale as well as the future growth of the insurer. Paying renewal premiums enables customers to provide financial security to self and their families. The 13th month persistency ratio of the Company improved from 83% at December 2021 to 85.9% at December 2022. Similarly, the 61st month persistency ratio improved from 50.2% at December 2021 to 64.8% at December 2022. The advanced models have helped map customer behaviour to various inputs and options that can be provided by the Company. Integration of the advanced models into the Company’s operations have helped provide targeted interventions to multiple customer segments, enabling the Company to step in and resolve customer queries and improve persistency. Simultaneously, the solution also aids the Company in predicting future persistency behaviour of new customers being onboarded, enabling the Company to initiate appropriate action. This includes interactions with senior sales managers to resolve queries thereby providing excellent customer service experience. Mr. Dhiren Salian, Deputy Chief Financial Officer, ICICI Prudential Life Insurance, said, “Customer-centricity is the focus of everything we do. As a ‘Customer First’ Company, we have been leveraging data science and technology to ensure our customers are on course to achieve their long-term financial goals. This is in line with our vision of building an enduring institution that serves the protection and long-term saving needs of customers with sensitivity.