ACCS14 : Analytics Case Competition

and Symposium 2014

Team Name

StatFish

Team Members

Saurabh Kumar
Vishal 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

Perform Required Statistical Analysis
Segmentation of Customers based on desired criterion
Characteristics identification of Customers based on segment
Planning business strategies for the targeted segments

Data Used
Primary data is provided for the company CarZuma

Insurance 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 Performed

1-way ANOVA

I.
a)
b)
c)

Hypothesis 1: Cover Type has significant impact on Profit

Hypothesis 2: Source of Lead has Significant impact on Profit
Hypothesis 3 : Channel of Lead has Significant impact on Profit

2-way ANOVA

II.
a)
b)

Hypothesis 4: There is significant impact of Gender and Age on Profit

Hypothesis 5: Interaction of Channel and Type of Lead has significant
impact on Profit

III. Correlation Matrix

a)
Hypothesis 6: Correlation between Year, IDV and Cubic
Capacity are significant
IV. ANCOVA
a)
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 profit

4.

Effect of age and interaction effect of (age & gender) are found to be
significant* on Profit

5.

Neither the interaction nor individual effects of type and channel are found
to be significant* on Profit

6.

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.