Surrender triggers in Life Insurance: what main features affect the surrender behavior in a classical economic context ?
Résumé
This paper shows that some policy features are crucial to explain the decision of the policyholder to surrender her contract. We point it out by applying two segmentation models to endowment policies from a life insurance portfolio: the Logistic Regression model and the Classification And Regression Trees model. First we present the models and discuss their assumptions and limits. Then we test different policy features and policyholder's characteristics to be lapse triggers so as to segment the portfolio in classes regarding the surrender risk. Results make it explicit that duration and profit benefit option are essential. Finally, we explore and discuss the main differences of both models in terms of operational results.
Domaines
Statistiques [math.ST]
Origine : Fichiers produits par l'(les) auteur(s)
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