Increasing the sales of financial services

Sales support services offered by StatConsulting provide the means of effectively using CRM systems by employing a wide array of client group analyses. This facilitates the effectiveness of Cross Selling and Up Selling strategies within a single insurance company, as well as within a group of companies (provided it is possible to exchange data within the group).

Our software and data analysis services provide the means of segmenting and profiling customers, as well as constructing models which predict their response to offered products.

The increased effectiveness of sales and better adjustment of the supplementary products to the customers' expectations help decrease the costs of marketing campaigns.

The information about possible customer migration is provided by Churn Analysis (estimating the probability that a customer will stop using the company's services) and Survival Time Analysis. With this information in hand it is possible to take measures preventing the customers from terminating their insurance policies. The information about the customers gathered in this way, combined with Life Time Value analysis (which determines the profit a customer is likely to generate), helps optimize the company's operations in order to increase the generated profit.

Preventing false insurance claims

Insurance companies, especially ones offering property insurance, are exposed to the risk of fraud through false claims. Such practices, common primarily in the field of vehicle insurance, are costly to prevent. Usually actions aimed at countering false claims are not very effective. The verification of the reported damages increases the time clients are serviced and has an adverse effect on the insurer's image.

An effective system of identifying potential frauds (Fraud Detection), which employs, among others, the methods of behavioral scoring, is able to significantly decrease the impact of false claims. It allows the company to increase the scrutiny of customers characterized by elevated risk of submitting false claims, while at the same time shortening the servicing time of customers from low risk groups. Our experience in using tried and tested software allows us to model this kind of customer behavior.

Improving data quality

The distinctive mode of operation of insurance companies, exhibited by cooperation with many agencies and brokers, causes that the available customer data is often noisy or incomplete. Frequently the same client is entered into the database multiple times or the personal information about clients is incomplete. This makes managing the customer database more difficult, increases the cost of analyses, and can even have a negative impact on the company's image, for instance if the same customer receives two or more independently issued offers. Additional problems arise in the event of merger of two companies from the insurance sector and the associated data transfers.

StatConsulting offers solutions which facilitate the handling of Data Quality problems. As an example, our tools include:

• matching and deduplication - searching for and merging of duplicate records,
• standardization - applying uniform spelling rules to names, streets and numerical data, according to the client's preferences,
• parsing - dividing the fields into appropriate parts, for example separating first and last names, zip code and city name or house and apartment numbers.

After proper cleaning, supplementing and verification of the data, the size of the database can decrease even by several tens of percentage points. This improves the quality of the performed analyses and lowers maintenance costs. Moreover, a fully functional database obtained in this way can be used to gather information about products used by everyone living in one household.