ACCS14 : Analytics Case Competition and Symposium 2014

Team Name : StatFish

Team Members : Saurabh KumarVishal Bansal

Department : IME

College : I.I.T. Kanpur

Case No. : 2 (JigSaw Academy)

Statement of business problem

For a car insurance company, which kind of segments generate better leads on the basis of profitability to the company.

On which segment of customers, the company should target for profitability and which segment of customers can be considered as bad i.e. not profitable to the company.

Why Analytics to address the problem?

Lots of data but little conclusive information Analytical capability is a Key Competitive Advantage Information should be appropriate to take action in corporate

Addressing the problem using analytics

1 Identification of Appropriate Data

2 Perform Required Statistical Analysis

3 Segmentation of Customers based on desired criterion

4 Characteristics identification of Customers based on segment

5 Planning business strategies for the targeted segments

Data Used

Primary data is provided for the company CarZumaInsurance by JigSaw Academy

For different analysis, we used appropriate attributes given in the data

Consistency check for out of range, logically inconsistent and Outlier

Check for missing data

Methodology Calculate Profit from a customer as difference of Premium paid and claim

amount All Statistical Analysis are performed on SPSS

Statistical Analysis PerformedI. 1-way ANOVA

a) Hypothesis 1: Cover Type has significant impact on Profitb) Hypothesis 2: Source of Lead has Significant impact on Profitc) Hypothesis 3 : Channel of Lead has Significant impact on Profit

II. 2-way ANOVAa) Hypothesis 4: There is significant impact of Gender and Age on Profitb) Hypothesis 5: Interaction of Channel and Type of Lead has significant

impact on Profit

III. Correlation Matrixa) Hypothesis 6: Correlation between Year, IDV and Cubic

Capacity are significant

IV. ANCOVAa) Hypothesis 7: Age and Gender have significant impact on

Profit while considering the influence of IDV

Results & Discussions

1. Cover type has significant* impact on profit. Comprehensive cover type found out to be more profitable.

2. Source of lead (Type) has no significant* impact on profit.3. Channel of lead (Channel) has no significant* impact on profit4. Effect of age and interaction effect of (age & gender) are found to be

significant* on Profit5. Neither the interaction nor individual effects of type and channel are found

to be significant* on Profit6. IDV is highly correlated with year of manufacture and cubic capacity.7. Effects of IDV, Age and interaction effect of (Age & gender) are found to be

significant* on Profit.

* Significance at 5% level

Recommendations In various analysis for effect of type and channel of lead on

Profit, we found out that they dont have any considerable effect on it.

=> CarZuma should not worry about the segments of leads as they dont have significant impact on Profit.

Various analysis showed that Age, IDV(Insured Declared Value) and interaction effect of Age & Gender have significant impact on Profit.

=> CarZuma should target customers of age 60-70 years. Also, the females of age group 50-60 years need to be preferred.

=> Females of age group 25-30 years is bad segment from the profitability perspective.

=> Customers having car of higher IDV should be targeted as they are found to be profitable.