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Lincoln Financial Plans Big Policyholder Analytics Initiative

The carrier will work with Towers Watson and Oliver Wyman to study the behavior of its variable annuity customers.

Radnor, Pa.-based Lincoln Financial Group is planning to use advanced analytic modeling techniques, from Towers Watson and Oliver Wyman, in a study of variable annuity policyholder behavior.

The move indicates the potential for predictive modeling outside of its traditional insurance applications, which have mostly revolved around fraud detection in claims. In addition, life insurers, struggling with lagging sales, are looking for the best possible prospects.

The Towers Watson platform will be used to identify links between lapse behavior and variables such as age, gender, and policy size and duration, while the Oliver Wyman offering will help refine Lincoln's understanding of how different policyholder characteristics and behaviors impact income start time and withdrawal amounts.

"At the core of Lincoln's annuity franchise is disciplined product development and risk management, which enables us to create sustainable products that balance financial integrity with customer value," said Mark Konen, president, Insurance and Retirement Solutions, Lincoln Financial Group, in a statement. "Lincoln is bolstering this approach through the use of advanced analytics that bring greater clarity around factors that influence policy lapse rates and client income utilization. These techniques will move our industry forward as they have done in other segments, such as Property & Casualty, and we believe we are among the first in the Variable Annuity space to utilize them."

Analytics-driven customer acquisition and retention in insurance

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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