Unveiling Car Insurance Claim Insights: Exploring Our Tableau Dashboard

Project Overview:

The Car Insurance Claim Insights dashboard offers valuable findings: population and transmission impact on claim frequencies, the correlation between NCAP rates and claim rates, claim frequency trends over policy periods, and claim rate variation across policy months. These insights empower insurers to optimize risk management and tailor insurance products for different customer segments.

Source of DataSet (Link & Dashboard):

In the data preprocessing phase, a comprehensive dataset assessment was conducted to understand the data's meaning and significance. Data type conversion was performed to convert certain string fields, like "IsClaim," into numerical values for efficient analysis. Data formatting grouped related data fields coherently to enhance dashboard clarity.?

Assumptions were made for handling missing data, including "Age of Driver," "Age of Car," "Car Claim Type," and "Claim Amount," using statistical imputation methods. These steps ensure a well-prepared dataset for further analysis and dashboard creation, focusing on key insights for the car insurance claim prediction dashboard.

• Population Group Impact on Claims: The analysis reveals that the 0-10K population group experiences a higher number of claims, suggesting specific demographic or geographical factors influencing claim frequencies. This valuable insight enables insurers to allocate resources effectively and tailor insurance products to suit the needs of this specific population segment, optimizing risk assessment strategies.?
• Transmission Type and Claim Frequencies: The data uncovers that claims for manual transmission vehicles surpass those for automatic transmission, pointing to potential risk factors associated with manual transmission. This finding prompts further investigation into the factors influencing claim frequencies for each transmission type, enabling insurers to refine risk assessment models and design targeted insurance offerings.

• NCAP Rate 2 and Claim Rate: NCAP Rate 2 was the most prevalent among insured vehicles, with 21402 units. The claim rate of 6.49% indicated a moderate level of safety features, aligning with the overall average, and representing a typical claim risk.
• NCAP Rate 4 and Safety: Vehicles with NCAP Rate 4 showcased the lowest claim rate at 6.29%, highlighting them as significantly safer choices with superior safety features and reduced claim incidents.
• NCAP Rate 5 and Claim Frequency: Surprisingly, NCAP Rate 5 vehicles, while possessing high safety ratings, exhibited a claim rate of 6.68%. This suggests that other factors, such as external conditions or driving behaviors, may contribute to the relatively higher claim frequency.

• Claim Frequency Trends: Irrespective of the New Car Assessment Program (NCAP) rate (2 to 5), a significant pattern emerged in claim frequency. The majority of claim cases were recorded during the initial two months of insurance coverage and resurfaced around the 12th month. This observation highlights heightened claim risk during both the early and later stages of the policy term, necessitating focused attention from insurers to manage claim volumes during these periods effectively.
• Claim Rate Reduction Over Time: A compelling finding revealed a noteworthy drop in claim rates from the 12th to the 14th month of the policy period. This decline signifies a decrease in the occurrence of new claims as policyholders maintained their coverage. The observation suggests that over time, the claim risk decreases, potentially due to policyholders' improved driving habits, better awareness of safety measures, or other factors. This insight offers valuable direction to insurers for optimizing risk assessment strategies and identifying periods of reduced claim risk for more efficient resource allocation and claims management.

• Claim Rate Variation: The 10th month exhibited a distinct pattern in claim rates, with the highest average claim rate at 9.4%, surpassing the overall average of 7.17%. This indicates a notable increase in claim frequency during the 10th month of the policy term. Insurers should pay close attention to this period and develop strategies to effectively manage the potential surge in claim volumes.
• Early Period and Claim Rate: The initial two months showed the lowest claim rate at 4.43%, significantly lower than the overall average of 7.17%. This highlights a significant reduction in claim occurrences during the early stages of insurance coverage. Such lower claim risk at the outset can be valuable for insurers and may indicate that policyholders exercise more caution during this phase.

Conclusion:

The car insurance claim prediction dashboard analysis has proven to be an invaluable resource for insurance companies, equipping them with crucial insights to drive informed decision-making, optimize risk management, and enhance customer satisfaction.

Overall, these data-driven insights enable insurers to tailor insurance products, refine risk assessment strategies, and optimize resource allocation. The car insurance claim prediction dashboard serves as a powerful tool for data-backed decision-making, ensuring insurers stay competitive and responsive to evolving customer needs in the dynamic insurance landscape.

Improvement suggestion:

• Include additional variables like driver experience, weather conditions, and vehicle maintenance history for a more comprehensive analysis.
• Conduct granular analysis by segmenting data based on geographical regions or driver demographics to gain deeper insights.
• Explore external data sources to supplement the dataset and enrich the analysis.
• Implement advanced machine learning algorithms for predictive modeling to improve claim prediction accuracy.
• Regularly update the dataset to ensure data relevance and accuracy in ongoing analysis.
• Collaborate with domain experts and stakeholders to gain valuable insights and refine analysis approaches.