How SBI General Insurance Uses Data to Improve Car Insurance

In a world where everything is becoming more personalized, from the ads we see online to the way we shop, it's no surprise that insurance is getting a makeover too. SBI General Insurance is at the forefront of this change, using data to make insurance better for everyone. Here's a story about how they're doing it.

What's the story behind SBI General's Journey?

Let's start with a bit of background on SBI General Insurance. It's part of the State Bank of India family, one of the biggest and most trusted names in banking. Since starting in 2009, SBI General has grown really fast. They've gone from just 17 branches to over 141 across India and have helped more than 55.55 crore customers!

That's huge, right? And there's more – they've won awards like ‘Insurer of the Year’ in 2020 and 2021, and in 2022, they were named the 'Best General Insurance Company of the Year'.

So, how did they get here? A big part of their success story is data – collecting it, analyzing it, and then using it to make better insurance products for people like you and me.

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Vehicle Insurance Dataset

Let's inspect our dataset. The dataset offers a comprehensive overview of the vehicle insurance landscape, providing insights into customer preferences, dealership networks, financing options, and insurance policy choices. This dataset can be valuable for analysing trends in vehicle insurance, assessing regional variations in vehicle sales and insurance coverages, and understanding consumer behavior in the vehicle insurance market. Here's the detailed feature of the dataset

The vehicle insurance dataset contains 35067 rows and 65 columns.

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How SBI General Insurance Uses Data to Improve Car Insurance?

Being a data analyst, it's important to tackle the large datasets like Vehicle Insurance. We've come up with a five-step strategy that's all about getting to the heart of what matters most in insurance data analysis.

This approach isn't just about numbers and charts;

It's about understanding people, their needs, and how to serve them better. Let’s break it down into simple terms, starting with a proper introduction and then diving into each of the five steps.

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1. Identify the users or stakeholders for the dashboard.

First up, they figure out who's going to use this data. In this case, it’s someone called an Insurance Manager.

This person has a lot to do, like figuring out the risks of giving someone insurance, making plans to not lose money, checking insurance applications, making sure claims are sorted out quickly, and keeping an eye on what competitors are doing.

Stakeholders need lots of info to make smart decisions, like data on claims, who’s buying policies, and what’s happening in the market. They also face challenges, like setting prices right, dealing with tricky claims, following new rules, staying ahead in the market, and watching out for fake claims.

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

Next up is the empathy map. This is a way to get into the Insurance Manager's shoes and understand their day-to-day experiences. It's not just about the tasks they need to complete but also about how they feel and what they aim to achieve. This step is all about making tools and analyses that really resonate with them on a personal level.

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3. Identify Metrics or KPIs Matter the Most.

Once an empathy map is ready. As a data analyst, you need to decide on the most important things to keep an eye on, called KPIs (Key Performance Indicators). This includes stuff like how long policies last on average, how much the average premium costs, how many people add extras to their policy, how many policies get renewed, and what payment methods people prefer. Here are the following KPIs :

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4. Understand the Objectives and Goals.

After understanding what the manager needs and what to track, they set some goals like making the insurance portfolio better, making sure customers are happy, and keeping the team sharp and innovative. The big idea is to grow the number of policies, make more money from them, and make sure the team works well together. Here are the Key Objectives & Goals :

Objective for the Insurance Manager:

‍The Insurance Manager aims to improve how well the insurance portfolio does by focusing on the areas that make the most money and making better models for figuring out risks. They plan to use what customers say to make their insurance products and customer service better, hoping to make customers happier.

The Insurance Manager also wants to make their team leaders stronger by giving them more training and encouraging them to work together and come up with new ideas.

Goal for the Insurance Manager:

‍The Insurance Manager's goal is to grow the business by selling more insurance policies, making it more likely that people will choose their policies over others, and getting more people to renew their policies. This will help increase the money the company makes.

They also want to build a team that performs very well by helping their agents and analysts get better at their jobs. Plus, they're focused on making sure everything their team does fits with the bigger goals of the company, so everyone is working together in the same direction.

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5. Ask Business Questions

Finally, it’s time to ask some big, strategic questions. These questions help paint the big picture, like figuring out overall revenue, understanding how different factors like vehicle types affect the business, and seeing how policies are renewed across different regions. The following strategic questions that directly align with overarching business objectives are :

Q1. What is our overall performance in vehicle Insurance?

Metric: Customer count, Insurance Declared Value

Question: some text

• Unique count of customer
• Total insurance declared value

Observation: We have 16891 customers with $34.6 billion insured amount and 35066 policies running.

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Q2.How are my customers Distributed over Banks?

Metric: Customer count

Question: some text

• Customers by Top 10 Banks
• Customers by Payment Mode

Observation: Amex cc is popular amongst customers and they like the Direct Debit Facility of payment mode.

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Q3. What is our customer's choice of policy type for their vehicle?

Metric: Customer Count

Question: some text

• Customer count by policy type
• Count of policy by vehicle type

Observation: Our customers prefer TP Renewal more and their favourite vehicle type is SUV.

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Q4. Which regions and categories contribute the most to sales?

Metric: Gross Premium

Question: some text

• 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.‍

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Outcome:

In conclusion, our analysis reveals distinct preferences and behaviors among our clientele. 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. The payment preferences of our customers lean towards the convenience of American Express credit cards and the Direct Debit Facility, highlighting their desire for streamlined transactions. Impressively, our current customer base encompasses 16,891 individuals, collectively insuring an amount of $34.6 billion across 35,066 policies