Background - Understanding Annuities, Lapses, and Partial Withdrawal Behavior:
- An annuity is a long-term investment product providing a source of retirement income. Lincoln offers a variety of annuities with different features and guarantees.
- Annuity policyholders can choose to lapse (fully surrender) their policies at any time. They can also take partial withdrawals at the times and amounts of their choosing.
- Lapse and partial withdrawal behaviors are significant drivers of Lincoln's future cash flows, so there is great interest in understanding these behaviors and how they relate to each other.
Project Description:
- Use Lincoln policyholder data to analyze patterns in lapse and partial withdrawal behavior over the last ten years.
- Build reports and visualizations depicting key relationships and drivers.
- Build predictive models to study the likelihood of lapse, likelihood of partial withdrawal, amount of partial withdrawal, and relationship between partial withdrawal and lapse behavior.
Keywords:
- Annuity
- Actuarial Science
- Insurance
- Lapse
- Partial Withdrawal
- Fall mentor time: Monday: 10:30 AM Eastern
- Fall lab time: Friday: 9:30 AM Eastern
- Requirements: Open to all students