An Insurance organization wants to classify it’s customers based on following parameters:
Annual Income -- < Rs. 3 lakhs; Rs. 3 lakhs to < Rs. 8 lakhs; Rs. 8 lakhs to <Rs 20 lakhs; Rs. 20 lakhs and above.
Premium paid in current policies -- < Rs. 5 K; Rs. 5K to < 8 K; 8 K to < 15 K; 15 K and above.
Past Claim – Yes; No.
A customer is classified as an Excellent customer if his annual income is Rs. 3 lakhs or more, premium paid is Rs. 8 K or more and has no past claim.
A customer is classified as a Good customer if (i) he has past claim but his annual income is greater than equal to Rs. 8 lakhs and has paid premium of Rs. 15 K or above; (ii) he has no past claim and premium paid by him is Rs 8 K or above.
In all other cases, a customer is classified as a valuable customer.
Check the consistency of this system and suggest an algorithm to do such classification.
Also, generate 1000 records based on your assumptions on % of customers in different ranges of annual income, premium and claim history. Implement your algorithm on this data using calc and test your results.
Share your ideas, concern or approach in comment.
If acustmer has 3 lake annual income pay 8k premium and past claim yes how classified
ReplyDeleteI have used a simulation for this example and used Pi-chart to show results.File is available @
ReplyDeletehttps://drive.google.com/file/d/0B-ZpoDqVmgs5Z3BQaEN4UmRZV3c/view?usp=sharing
use following link
ReplyDeletehttps://drive.google.com/file/d/0B-ZpoDqVmgs5b2lJR1dMWTdrems/view?usp=sharing
The inconsistency lies in Excellent and good customers. The criteria of good customers overlaps with the criteria of Excellent customers.
ReplyDeleteInconsistency can be removed by modifying the criteria of good customer condition ii) he has no past claim and premium paid by him is Rs 8 K or above and annual income is < Rs.3 lakhs.
ReplyDelete