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Customer Lifetime Value in Insurance - sasCommunity.org

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Future <strong>Value</strong> of a customerAssumption: Predicted Time Period T=1 yearRisk adjustedrevenuesAdditionalrevenuesPredictedexpensesR –Cancel + CS –Claim-ABCFV=(1 + i )FV = Future <strong>Value</strong>R = revenuesCancel = a customer`s cancellation valueCS = a customer`s Cross-Sell<strong>in</strong>g valueClaim = a customer`s claim valueABC = activity-based costsi = <strong>in</strong>terest rateCopyright © 2001 , SAS Institute Inc. All rights reserved.

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