TITLE
"Effective Use of Follow-up Procedures to Decrease Lapse Rates," Journal of Insurance Issues and Practices, Bergiel, Blaise J. and Ronald D.Taylor, 1983, Vol. VI, No. 1: 13-21.

ABSTRACT
The central problem investigated was whether follow-up applied to new policyholders could effectively influence their behavior toward cancellation. Six midwest life insurance companies provided 1050 new life insurance purchasers, who were randomly assigned to one of three groups. When monthly payments were received one group received a telephone follow-up, one group received a letter follow-up, and the third group received no follow-up.

Follow-up procedures were found to be effective in reducing the lapse rate. The lapse rates for the three groups were as follows: telephone follow-ups = 11.4 percent, letter follow-ups = 8.6 percent, and no follow-ups = 22.9 percent. Although there was no significant difference between the lapse rates associated with the two follow-up procedures.