LIMRA Insurance Lapse Predictor

For my Master’s capstone, I dug into the rising trend of policy lapses in universal life insurance, focusing on millennials. Life insurance is a key part of financial security, and insurers worry that millennials aren’t staying committed to their policies. I wanted to find out why these lapses happen and what actually keeps this group engaged.

Research Scope

I analyzed the LIMRA Universal Life Dataset for lapse trends and built predictive models to forecast lapse probability. I also went straight to the source: surveys and interviews with millennials about how they perceive and experience life insurance. The outcome is a set of recommendations for insurers who want to reduce lapse rates and build long-term customer loyalty with this market.

Research Hypothesis

My hypothesis: millennials lapse more because they understand life insurance less, the purchase process is confusing, and the policies on offer don’t match their needs. Fix those three things and lapse rates should drop, along with churn among millennial policyholders.

Team Members

• Binesh Kumar