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Customer lifetime value in insurance

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Resumo:Throughout the years, companies from several business sectors have strived to strengthen their client portfolio by acquiring and retaining the most profitable. For this to happen, current and potential clients must be clearly classified based on their past and future interactions with a company throughout the lifetime of their relationship. This report presents how the previous scenario was implemented using Customer Lifetime Value (CLV) in one of the biggest bancassurance companies in Portugal, during a 9-month internship. Before delving into the detailed set of this project phases, the concept of CLV was reviewed, as well as the characteristics which define its several approaches, followed by the alignment of the chosen approach to the company reality. This CLV model was limited to a 12-month future horizon, covered 7 company dimensions (one global, plus 1 per lines of business) and took into consideration as main future client interactions churn, cross-sell, upsell and risk of claiming. These previous components were modeled with the help of SAS Enterprise Miner or estimated using SAS Enterprise Guide and analyzing historical events. Besides a purely monetary CLV, it was also generated an ordinal output using a set of business rules and a ranking data discretization method. Finally, a back-test validation procedure was executed to evaluate the reliability of both types of outputs in each of the considered dimensions and its results were analyzed.
Autores principais:Abreu, Jorge Eduardo Carvalho
Assunto:Customer Lifetime Value CLV Customer Current Value Upsell Cross-sell Churn Risk Insurance Bancassurance Valor actual do cliente Risco Seguros
Ano:2019
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
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author Abreu, Jorge Eduardo Carvalho
author_facet Abreu, Jorge Eduardo Carvalho
author_role author
contributor_name_str_mv Gonçalves, Rui Alexandre Henriques
Castelli, Mauro
RUN
country_str PT
creators_json_txt [{\"Person.name\":\"Abreu, Jorge Eduardo Carvalho\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Gonçalves, Rui Alexandre Henriques
Castelli, Mauro
RUN
datacite.creators.creator.creatorName.fl_str_mv Abreu, Jorge Eduardo Carvalho
datacite.date.Accepted.fl_str_mv 2019-02-07T00:00:00Z
datacite.date.available.fl_str_mv 2019-03-06T14:46:02Z
datacite.date.embargoed.fl_str_mv 2019-03-06T14:46:02Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Customer Lifetime Value
CLV
Customer Current Value
Upsell
Cross-sell
Churn
Risk
Insurance
Bancassurance
Valor actual do cliente
Risco
Seguros
datacite.titles.title.fl_str_mv Customer lifetime value in insurance
dc.contributor.none.fl_str_mv Gonçalves, Rui Alexandre Henriques
Castelli, Mauro
RUN
dc.creator.none.fl_str_mv Abreu, Jorge Eduardo Carvalho
dc.date.Accepted.fl_str_mv 2019-02-07T00:00:00Z
dc.date.available.fl_str_mv 2019-03-06T14:46:02Z
dc.date.embargoed.fl_str_mv 2019-03-06T14:46:02Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10362/62423
dc.language.none.fl_str_mv eng
dc.rights.cclincense.fl_str_mv http://creativecommons.org/licenses/by/4.0/
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Customer Lifetime Value
CLV
Customer Current Value
Upsell
Cross-sell
Churn
Risk
Insurance
Bancassurance
Valor actual do cliente
Risco
Seguros
dc.title.fl_str_mv Customer lifetime value in insurance
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_bdcc
description Throughout the years, companies from several business sectors have strived to strengthen their client portfolio by acquiring and retaining the most profitable. For this to happen, current and potential clients must be clearly classified based on their past and future interactions with a company throughout the lifetime of their relationship. This report presents how the previous scenario was implemented using Customer Lifetime Value (CLV) in one of the biggest bancassurance companies in Portugal, during a 9-month internship. Before delving into the detailed set of this project phases, the concept of CLV was reviewed, as well as the characteristics which define its several approaches, followed by the alignment of the chosen approach to the company reality. This CLV model was limited to a 12-month future horizon, covered 7 company dimensions (one global, plus 1 per lines of business) and took into consideration as main future client interactions churn, cross-sell, upsell and risk of claiming. These previous components were modeled with the help of SAS Enterprise Miner or estimated using SAS Enterprise Guide and analyzing historical events. Besides a purely monetary CLV, it was also generated an ordinal output using a set of business rules and a ranking data discretization method. Finally, a back-test validation procedure was executed to evaluate the reliability of both types of outputs in each of the considered dimensions and its results were analyzed.
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eu_rights_str_mv openAccess
format masterThesis
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inst_facet_str urn:organizationAcronym:unl{{{_:::_}}}Universidade Nova de Lisboa
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institution Universidade Nova de Lisboa
instname_str Universidade Nova de Lisboa
language eng
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network_name_str Repositório Institucional da UNL
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organization_str_mv urn:organizationAcronym:unl
person_str_mv Abreu, Jorge Eduardo Carvalho
publishDate 2019
repo_facet_str urn:repositoryAcronym:run{{{_:::_}}}Repositório Institucional da UNL
reponame_str Repositório Institucional da UNL
repository_id_str urn:repositoryAcronym:run
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spelling engpt_PTThroughout the years, companies from several business sectors have strived to strengthen their client portfolio by acquiring and retaining the most profitable. For this to happen, current and potential clients must be clearly classified based on their past and future interactions with a company throughout the lifetime of their relationship. This report presents how the previous scenario was implemented using Customer Lifetime Value (CLV) in one of the biggest bancassurance companies in Portugal, during a 9-month internship. Before delving into the detailed set of this project phases, the concept of CLV was reviewed, as well as the characteristics which define its several approaches, followed by the alignment of the chosen approach to the company reality. This CLV model was limited to a 12-month future horizon, covered 7 company dimensions (one global, plus 1 per lines of business) and took into consideration as main future client interactions churn, cross-sell, upsell and risk of claiming. These previous components were modeled with the help of SAS Enterprise Miner or estimated using SAS Enterprise Guide and analyzing historical events. Besides a purely monetary CLV, it was also generated an ordinal output using a set of business rules and a ranking data discretization method. Finally, a back-test validation procedure was executed to evaluate the reliability of both types of outputs in each of the considered dimensions and its results were analyzed.application/pdfpt_PTCustomer lifetime value in insuranceAbreu, Jorge Eduardo CarvalhoGonçalves, Rui Alexandre HenriquesCastelli, MauroHostingInstitutionOrganizationalRUNe-mailmailto:run@unl.ptrun@unl.ptURNurn:tid:2021840642019-03-06T14:46:02Z2019-02-072019-02-07T00:00:00ZHandlehttp://hdl.handle.net/10362/62423http://purl.org/coar/access_right/c_abf2open accessCustomer Lifetime ValueCLVCustomer Current ValueUpsellCross-sellChurnRiskInsuranceBancassuranceValor actual do clienteRiscoSeguros1652711 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesis2019-02-07http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://run.unl.pt/bitstreams/a5326b63-e7b2-4496-b326-eb38ec03a403/download
spellingShingle Customer lifetime value in insurance
Abreu, Jorge Eduardo Carvalho
Customer Lifetime Value
CLV
Customer Current Value
Upsell
Cross-sell
Churn
Risk
Insurance
Bancassurance
Valor actual do cliente
Risco
Seguros
status SINGLETON
subject.fl_str_mv Customer Lifetime Value
CLV
Customer Current Value
Upsell
Cross-sell
Churn
Risk
Insurance
Bancassurance
Valor actual do cliente
Risco
Seguros
title Customer lifetime value in insurance
title_full Customer lifetime value in insurance
title_fullStr Customer lifetime value in insurance
title_full_unstemmed Customer lifetime value in insurance
title_short Customer lifetime value in insurance
title_sort Customer lifetime value in insurance
topic Customer Lifetime Value
CLV
Customer Current Value
Upsell
Cross-sell
Churn
Risk
Insurance
Bancassurance
Valor actual do cliente
Risco
Seguros
topic_facet Customer Lifetime Value
CLV
Customer Current Value
Upsell
Cross-sell
Churn
Risk
Insurance
Bancassurance
Valor actual do cliente
Risco
Seguros
url http://hdl.handle.net/10362/62423
visible 1