Use Case

May 1, 2024

How ICICI Lombard Uses Data Analytics to improve product performance

Let's take a simple look at how banks like ICICI use information about car insurance to make better decisions and help their customers.

ICICI Lombard General Insurance is like your trusty friend for all insurance needs in India. They cover everything from car and health insurance to protecting your home and even your travel adventures! In the fiscal year 2023, they earned a whopping ₹217.71 billion in Gross Written Premium, showing how much their customers trust them.

Here's an interesting story: In 2016, ICICI Bank decided to share the love and sold off a 9.0% stake in ICICI Lombard to Fairfax Financial Holdings, their partner. Then, in 2019, Fairfax Financial Holdings said goodbye, selling shares worth nearly Rs 2,627 crore. Talk about a big exit!

So, whether you're exploring the local scenery or embarking on global adventures, ICICI Lombard has got your back – and all your insurance needs sorted!

Now, let's dive into some insights (just for learning purposes!) on how ICICI Bank might analyze their data to understand their customers better.

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Slideshow Demo
Vehicle Insurance Data Story

About Dataset

The vehicle insurance dataset contains information about customers, their vehicles, and their insurance policies. 

It includes details like the customer's age, gender, occupation, and location, along with the make, model, and year of manufacture of their vehicle. Additionally, it provides information about the insurance policy itself, such as coverage type, premium amount, and policy duration. The dataset also records any previous insurance claims made by the customer, including the type of claim and settlement details.

Moreover, it may contain factors influencing insurance risk, such as vehicle age, condition, and usage history. This dataset is essential for insurance companies and analysts to understand customer behavior, assess risk, and improve insurance services.

Here's the detailed feature of the dataset

Vehicle Insurance Dataset Fields
Vehicle Insurance Dataset Fields
Field Name Data Type Description
dealer String The name of the dealership where the vehicle was purchased.
zone String Geographical zone of the dealership (e.g., Central, North, South).
state String The state in India where the dealership is located.
location String The specific city or town of the dealership.
dt_policy_expiry Date The expiry date of the policy.
policy_term_month Numeric The term of the policy in months.

The vehicle insurance dataset contains 35067 rows and 65 columns.

Dataset Here

How ICICI Lombard General Insurance Uses Insurance data for product performance

We're starting to explore insurance analysis, diving into this interesting field. Before we dive deep into data, let's lay a strong foundation for our journey. We'll begin by understanding some basic principles important for analyzing insurance.

1. Identify the users or stakeholders for the dashboard.

2. Design Empathy Map to define Users' Goals and Challenges or pain points.

3. Identify Metrics or KPIs Matter the Most.

4. Understand the Objectives and Goals.

5. Ask Business Questions

Step 1: Identify the users or stakeholders for the analysis

Define the User or stakeholder  who will use the vehicle insurance analysis data story. In our case, We’ll use an Insurance Manager. Recognizing their diverse needs, challenges, and priorities becomes the cornerstone for tailoring an effective data story. 

User Persona: Insurance Manager

Who's the Insurance Manager?

An Insurance Manager is your go-to person for all things insurance-related. They're the ones making sure everything runs smoothly in the insurance world.

What do they do?
  • Juggle all things insurance, from policies to claims.
  • Keep an eye on the big picture and the nitty-gritty details.
  • Work closely with teams to solve problems and make decisions.

What do they need?
  • Clear insights from data to make informed decisions.
  • Tools to streamline processes and save time.
  • Updates on industry changes and trends.
  • Easy communication with teams to collaborate effectively.

What challenges do they face?
  • Balancing multiple tasks and priorities.
  • Navigating complex regulations and policies.
  • Keeping up with the fast-paced insurance world.
  • Making decisions with confidence based on data.

After defining the User Persona and mapping out the needs, challenges, and responsibilities, the next step is to create an Empathy Map that will identify the user's pain points.

Step 2: Design Empathy Map

Understanding the Insurance Manager is key, and that's where an empathy map comes in. This tool digs into their emotions, goals, and challenges, offering insights beyond their day-to-day tasks. By stepping into their shoes, we can craft a data story that's not just functional but also resonates on a human level. It's about striking that perfect balance and designing our analysis with their perspective in mind.

Step 3: Identify the Key Performance Indicators (KPI’s)

Analysis hinges on KPIs and metrics – that's the real deal. It's vital to zero in on the KPIs that truly matter for reaching our goals. By keeping our eyes on the right metrics, we unlock valuable insights into our insurance policies.

Vehicle Insurance Dataset Fields
KPI Name Formula Definition
Average Term Policy Sum of policy term months / Total number of policies The average duration of insurance policies in months.
Average Premium per Policy Sum of Gross PremiumTotal/ Number of Policies The average premium cost for the policies issued.
Add-on Uptake Rate Number of Policies with Add-ons / Total Number of Policies * 100 The percentage of policies that have add-ons attached.
Renewal Rate Number of renewed policies/ Total number of policies * 100 The percentage of policies that are renewals out of the total number of policies.
Payment Mode Preference Number of Policies per Payment Mode/ Total Number of Policies * 100 The percentage preference of payment modes among policyholders.

Step 4: Understand the Goals & Objectives of User

Based on the Empathy Map and KPIs, it is essential to establish the goals and objectives of the Users. This will help align with the data story functionalities for effective decision making. Here are the Key Objectives & Goals:

Objective : To enhance insurance product offerings by closely analyzing policy types, add-on attachment rates, and renewal rates, informed by deep market research and customer feedback. The aim is to align product features with customer needs, ensuring competitive pricing and maximizing policy uptake and satisfaction.

Goals :

1. Increase Policy Uptake: Boost the total number of policies issued ,focusing on underpenetrated market segments and policy types with lower current uptake.

2. Enhance Add-on Attachment Rate: Improve the add-on product attachment rate by introducing targeted add-on products that meet specific customer needs identified through feedback.

3. Improve Policy Renewal Rates: Achieve a increase in the renewal rate for all policy types, emphasizing customer satisfaction and loyalty programs.

Step 5 : Ask Business Questions

Beyond KPI’s, organizations must engage in business-driven inquiry. This involves asking strategic questions that directly align with overarching business objectives. 

Q1. What is our overall performance in vehicle Insurance?
  • Metric: Customer count, Insurance Declared Value
  • Question:
    • Unique count of customer
    • Total insurance declared value
  • Observation: We have 16891 customers with $34.6 billion insured amount and 35066 policies running.

Q2. How are my customers Distributed over Banks?
  • Metric: Customer count
  • Question:
    • Customers by Top 10 Banks
    • Customers by Payment Mode
  • Observation: Amex cc is popular amongst customers and customers like the Direct Debit Facility of payment mode.

Q3. What is Count Of Customer By Policy?
  • Metric: Customer count, policy
  • Question:
    • Total count customer by policy type
  • Observation:
    ICICI Lombarad General and Cholamandalam Ms Genral policies have the highest number of customers, with 12,212 and 7,604 respectively. This indicates that they are popular among customers and increasing marketing spend on these policies can lead to better results.

Q4. Which regions and categories contribute the most to sales?
  • Metric: Gross Premium
  • Question:
    • Average Gross Premium by package?
    • Average Gross Premium by vehicle type?
  • Observation: Luxury and RTI Package are popular in high end customers whose top 3 vehicle type choices are Sports Car, MPV, SUV.

Q5 How are our customers distributed  By Top 5 Policy By Add-on Prod?
  • Metric:Count Customer , Policy, Add-on Prod
  • Question: Count Of Customer By Top 5 Policy By Add-on Prod
  • Observation: ICICI Lombard and Cholamandalam MS General have the highest number of customers buying add-on products, indicating that they have a higher potential for add-on sales.

Conclusion :

In conclusion, our analysis reveals distinct preferences and behaviors among our clientele.ICICI Lombard General Insurance product is very popular and preferred by most of the customers. High-end customers exhibit a strong preference for luxury and the RTI Package, with Sports Cars, MPVs, and SUVs emerging as their vehicles of choice. Furthermore, there's a noticeable trend towards TP Renewal, with SUVs standing out as the favored vehicle type.Impressively, our current customer base encompasses 16,891 individuals, collectively insuring an amount of $34.6 billion across 35,066 policies

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