As the days grow shorter and we enter the final quarter of the year, we’re excited to share some impactful developments and collaborations that have shaped our journey in October. At Satori, we are constantly driven by a vision to make well-being and engagement accessible and impactful, both for individuals and the organizations that support them.
Understanding Lapse and Its Significance for Carriers
For life insurance carriers, lapse rates are more than just a metric—they are a window into the health of their business and a gauge for policyholder engagement and satisfaction. A lapse not only represents lost revenue but also impacts customer retention and the value of lifetime customer relationships. High lapse rates have challenged carriers in recent years, and addressing this issue with forward-thinking solutions is essential.
Industry Insights on Lapse Trends (2022-2024)
Over the past few years, lapse rates have fluctuated due to factors like economic uncertainty, evolving policyholder needs, and shifts in consumer behavior. In 2022, the life insurance industry saw average lapse rates nearing 5-7% for term life policies, according to LIMRA, with variations across policy durations and demographic groups. Preliminary 2024 data suggests that lapse rates have risen slightly in some segments, reflecting ongoing economic pressures and changes in financial priorities among policyholders.
Looking ahead, the forecast for lapse rates calls for more robust and personalized solutions. For carriers, every 1% reduction in lapse rate can represent a significant financial impact—some studies suggest that a 1% decrease in lapse rates could improve profits by as much as 5-10%, depending on the portfolio size and policy demographics. Many carriers are aiming to reduce lapse rates to below 4% over the next two years, with a focus on predictive analytics and tailored engagement strategies as primary methods to achieve this.
Satori’s Lapse Predictor Pilot: Reducing Lapse with a Leading U.S.-Based Term Life Insurance Provider
At Satori, we are thrilled to work on a dedicated proof of concept with a leading U.S.-based term life insurance provider. This collaboration focuses on reducing lapse rates by identifying behavioral profiles most at risk of lapsing and helping the carrier implement timely conservation strategies. By combining our proprietary behavioral analytics with the provider’s data, we are uncovering critical trends and markers that highlight when and why policyholders may consider lapsing.
This proof of concept is designed to demonstrate how a tailored approach can support customer retention, mitigate financial risk, and enhance policyholder satisfaction. As we continue, these insights offer not only lapse prevention but also potential applications in areas such as personalized policy recommendations, claims handling, and even wellness initiatives to improve the holistic policyholder experience. By reducing lapse rates by even 1%, our partner can potentially see a 5-7% improvement in profitability, illustrating the tangible return on investment achievable with proactive lapse management.
Announcing Our New Incubator Partnership
In addition to our work on policyholder engagement, we’re thrilled to announce a partnership with Afthonia Lab, an incubator focused on innovation and growth. Together, we’re fostering holistic well-being solutions that can drive meaningful change, both for individuals and the organizations that support them. With Afthonia’s resources and shared vision, we’re able to take Satori’s impact to new levels and expand our reach in the wellness and insurance markets.
Thank you for being part of our journey. We look forward to closing out the year with more advancements and meaningful connections. Until then, please feel free to reach out to learn more about our initiatives or to share ideas. We’re here to grow, together.
