A major Chinese insurance company's success story: Redesigned process & data driven scoring model
As the client’s business continues to penetrate the market, the trend in post-loan customer performance is becoming more and more clear, and so it has become the new focus to optimize current approval process and policies, to better identify the credit risk level of new customers, and to effectively predict the behavioral pattern of post-loan customers.
The aim of the project was:
- to improve and optimize the client’s risk management platform
- to optimize both existing manual and system approval policies and processes and define new ones
- to optimize the design and implementation of the application scorecard
- to improve overall approval efficiency while keeping risk levels well under control
- to shorten the approval validity period and to effectively identify customer credit risk before, during and after the loan, so as to achieve a higher business value.
CLIENT: A major Chinese insurance company.
NEEDS: Optimized approval process, policies and application scorecard.
SOLUTION: Automated and standardized approval process and policies, and deployment in decision management platform StrategyOne, together with a new data driven application scorecard.
RESULTS: Overall approval efficiency was very much improved due to the reengineered process; the bad debt rate significantly improved due to the redesigned scoring model; and better risk control was achieved across the entire credit risk lifecycle.