IDENTIFYING CUSTOMER BEHAVIOR IN THE INSURANCE INDUSTRY USING DATA MINING CONCEPTS

Abstract

With the rapid growth of the insurance industry in Sri Lanka, Insurance Companies need to differentiate their offering to their customers by identifying customer preferences well ahead of their competitors. Therefore they need to convert their operational data into a corporate asset in order to gain a competitive advantage. The objective of this study is to investigate how data mining could be effectively applied with business to ensure customer acquisition and retention. This paper presents the investigation of how data mining techniques like Clustering and Classification can be applied in the insurance arena. This can support the Insurance industry to increase the Return on Investment of marketing campaigns by directing them at potential profitable customers. The mining effort is carried out using a methodology proposed by industry experts. The paper also addresses foreseen problems and findings that com-panies will have to encounter during such efforts.
Keywords: Data Mining, Insurance, Data Cleansing, Clustering, Classification

For full paper: fmscresearch@sjp.ac.lk