This report presents a comprehensive dashboard built for an insurance company to provide a detailed overview of their business activities. The requirements were: show the number of customers with car insurance, total claims paid out, average claim amounts across various demographics, average household income, and the total coverage zones.
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The company's primary objective, as discussed with the representative, is to analyze car insurance usage distribution by gender. The dashboard reveals an almost equal split between female and male users, with females accounting for 50.09% and males for 49.91%. Interestingly, despite their higher representation, female clients had lower total claim amounts, with $937.6 million compared to $940.5 million for males.
This data suggests that female clients may present a lower risk or that their claim behavior differs from that of males. As a result, the company could explore targeted advertising campaigns aimed at female clients to further increase their market share. Moreover, refining insurance offerings to better cater to this demographic's needs could improve customer acquisition and retention, making targeted investment in this area a potentially profitable strategy.
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The company's second objective, is to determine which car makes are most frequently involved in insurance claims. This information is valuable for understanding if certain brands are more prone to accidents or theft, potentially influencing premium adjustments and risk assessments. The dashboard reveals that Ford tops the list with $165.6 million in claims, followed by Chevrolet at $147.9 million, and Dodge at $92.9 million.
Armed with this data, the company can refine its pricing models by adjusting premiums for higher-risk vehicles. This analysis also aids in developing targeted strategies for marketing and risk mitigation, ensuring more accurate assessments and optimized profitability.
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The company's third objective is to examine the relationship between clients' education levels and their claim amounts. Generally, higher education is linked to more responsible behavior, which could result in fewer claims. However, the dashboard shows that clients with a bachelor's degree accounted for the highest total claims at $940.2 million, followed by high school graduates at $518 million, master's degree holders at $283 million, and PhD holders at $136.9 million.
As part of my analysis, I identified potential fraud patterns among clients with bachelor's degrees, raising concerns that merit further scrutiny. The company's representative has confirmed that a review will be conducted to assess the legitimacy of these claims and take appropriate action if necessary.