Enhancing Auto Insurance Operations with Data Analytics

Client Overview

A well-established third-party car insurance company with more than 250 outlets in strategic areas of a vast U.S. state. They are experts in affordable insurance cover for a multicultural client base, providing a full spectrum of policies and emphasizing great customer service.

Problem Statement

The client's policy-to-quote ratio was declining, premium defaults were increasing and leading to the cancellation of policies, and gross revenue was being lost. They could not even question high-risk areas and lowest conversion areas since they lacked exploratory data analysis.

Challenges

• The key challenges were decreasing quote-to-policy conversion ratio, premium defaults and related policy cancellations, and decreasing revenue.
• Because of over 250 offices, underperforming geographies were difficult to identify, and the absence of data analytics constrained the creation of well-researched, focused solutions.

Solution Implemented

Extensive exploratory data analysis (EDA) was conducted to identify offices and regions with worst quote-to-policy conversion and most premium defaults. The proposed interventions included additional support, flexible payment, and targeted marketing campaigns in the identified areas to improve performance.

Outcome with Metrics