The demand of insurance service is growing rapidly due to technology changes. Companies have become more aware of the profit-making potential of providing insurance services. Data mining helps insurance companies to analyze and extract useful patterns of data from customers’ database; the result of this analysis providing the needed services and encourage decision makers to use insurance-related data wisely.
Models of service:
- Risk Assessment:
One of the most important features is determining policy premiums; this is mostly used by automobile, home and health insurance companies. Many insurers benefit from telematics and IoT devices in order to predict and calculate risks.
- Customer Insights
Acquiring a comprehensive understanding of customers’ behavior, habits and needs from various sources is strategic for insurers as a result of this strategic learning, insurers achieve positive outcomes such as solving customer problems in a real-time with the right approach and also upselling products.
- Credit Scoring Model
It aims to classify customers according to their behaviors and put scores for each different variables then categorize customers in different groups according to their scores. With credit scoring, we can identify the most loyal customers; also we can make different offers for each category of customers to encourage other customers to be loyal in order to increase the company’s profitability.
- Market research
Market research is a way to gather information about target market or customers. It is a very important component of business strategy.