Project 4-Cars Case Study - MICHAEL OGUBUIKE

Project Objective
The main aim of this project is to analyze the dataset of car insurance using tableau. Then the
findings will be presented base on the dataset of car insurance into tableau dashboard and
storyboard. An in depth analysis and corresponding recommendations are meant to cater for the
corporate objective of the insurance company in question.

Assumptions
1) Assume the dataset has no missing data as to make the analysis useful.
4) It is assumed that the dashboard presented are intended to analyze the car insurance
claims in details as to enable the insurance company to have a broad understanding of
their customer base and improve customer service.
3) There are several factors which are provided in the dataset. However, there may be other
unseen factors that are not considered
4) YOJ and birthdate will lead to number of years/age computed as at the current year.

Data exploration
Attached dataset has information on 10284 clients. All information are related to
customer demographic car insurance in various sub-heads;
Value of house owned, Income, Gender, Travel time, Education level, Birthdate, Marital
status, Occupation, Age of car, Claim amount, Worth of car and claim frequency.

ID Id of customer
KIDSDRIV Total No of kids the car driver has
BIRTH Date of birth
HOMEKIDS No of kids the driver has at home
Year in which the car owner applied for the car insurance policy ( 0 means
YOJ insurance was applied for while the car is brand new, 10 means insurance
was applied for in the 10th year of car ownership)
INCOME Income
PARENT1 If car owner has his parents
HOME_VAL Value of the house owned
MSTATUS Marital status
GENDER Gender
EDUCATION Education level
OCCUPATION Occupation level
TRAVTIME Travel time taken in minutes(On an average)
CAR_USE Purpose of using the car
BLUEBOOK What is the worth of the car
CAR_TYPE Car type
OLDCLAIM Previous claim
CLM_FREQ How often claimed
CLM_AMT Current Claimed amount
CAR_AGE Age of car
URBANICITY Where the car is being driven primarily

We have to create new calculated fields as to enable us run the datasheets

Claim Frequency Calculation

Calculation of Claim amount rang

Computation of Age group

Formation of Multi-dimension parameter as this will be used in Demographics of Client

Calculation of Age
Formation of Multi-dimension parameter - Top N Customer
Demographics of Client

Comments:
The schedule above was designed to give insight on ‘Know Your Customer’ (KYC).
EDUCATION vs INCOME RANGE

Comments
It seems the income range of highly educated customers is higher than those than those that have
high school. Again Male customers has less income in all education level when compare with
their Female counterpart.
INCOME RANGE vs CAR TYPE

Comments
In all the car type except Panel Truck, income range of <50000 and 50000-100000 are most
preferred as other income range does not display any solid correlation to any definite car type.
CAR TYPE vs GENDER

Comments
It seems that Female customers has robust empathy for sports cars and SUV as Male customers
does not buy car insurance compare with their Female customer counterparts.
OCCUPATION vs EDUCATION

Comments
Female have more income compared to male.

Majority of customer’s income range is less than 100K. As the income level increases, the number of
customers buying insurance seem to decrease.

Jobwise, jobless, blue collar, clerks and students prefer to buy car insurance.

From the result grid, graduates of high school and Bachelors buy car insurance.
OWNER AND CAR DEMOGRAPHICS

Comments
Car amount within 8000 – 10000 has lowest turnout.
SUV seems to have highest claim especially for car worth between 4000-8000.

Overall, Panel Truck and Van has lowest claim amount as SUV and Pickup are highest.

CAR SUMMARY

Comments
Car age seems to be inversely proportional with car worth.
SUV worth high when it is newly purchased and it dropped in value. Minivan, on the other
hand, depreciates slower and still worth quite a lot as the years go by.
Married Female controls more than married Male workers as they favored driving bigger car.
Panel truck and other commercial cars maintained high car worth over years unlike the smaller
cars. This may be attributed to demand for these type of vehicle or less maintenance cost.
Men seems to prefer Mini Van as Female likes SUV.
Among the male drivers, the minivan and pickup claim value is very high compare to the other
vehicle types.
CAR DEMOGRAPHICS

Comments
As I stated before, Men seems to prefer Mini Van as Female likes SUV. This gives an understanding that
women prefer compact cars more and do not spend much on cars. Panel trucks are used by male may
be for work and commercial purposes as age seems to be inversely proportional with car worth.
However, Panel trucks and minivans are relatively expensive when compare with SUV and sports car.
SUMMARY OF CAR OWNER INCOME RANGE vs CAR TYPE

Comments
Regardless of occupation or income range, SUV and minivan are preferred vehicle type among
customers.
Among the male drivers, the minivan and pickup claim value is very high compare to the other vehicle
types.

CAR TYPE vs CAR WORTH

CLIENT AND CAR INSURANCE

Comments
This dashboard will provide information such as;
Majority claim for male and female customers, the trend of claim over the life of the cars and the
number of insurance claim for different cars.

CLAIM FREQUENCY OF DIFFERENT CAR TYPE

Comments
Most claim amount fall in the group of <4000 as insurance claim is more at the initial stage of the car.

CUSTOMERS YEARS OF INSURANCE

Comments
At 10yrs of car age, claim insurance seems to be highest.

CLAIM AMOUNT vs CAR WORTH

Comments
The frequency of car claims is higher during the early stage of car age.
CLAIM BY CAR TYPE

Comments
Top claims with respect to car type belongs to the SUV group.
CUSTOMERS CLAIM CRITERIA

TOP 5 CUSTOMERS CLAIM

Comments
Top 5 customer claims are;
Pickup with 1 yr age, Van with an age of 3 yrs, Sports car in the first year,Very old Parcel trucks with age
of ~ 12 yrs and Minivans with age of ~ 6 yrs.

CAR TYPE vs CLAIM AMOUNT

CLAIM FREQUENCY BY CAR TYPE
STORYBOARD

SUV INSURANCE FOR FEMALE DRIVER

COMMENT
Story board created is to explore the insurance claims for SUV female drivers.
Point 1: Focus on the SUV and the car worth
Majority of the female drivers drove SUV and also dominates car insurance business.
In terms of car worth, it is relatively high in value

Point 2: Focus on Female driver with SUV

Income range for female drivers is not high but they are the highest number of owners for SUV
Regardless of occupation that the female drivers are, their preference car type is SUV
Point 3: Focus on Insurance claim for SUV

This table tells us that insurance claim for SUV is more on the female than male.
Point 4: Focus on claim amount for SUV

Overall, the claim for SUV is the highest among all car types
Point 5: Female Drivers claim for SUV
On the whole, the claim for SUV is the highest among all car types but more on the female drivers than
male drivers.
MINIVAN and PICKUP FOR MALE DRIVERS

COMMENT;
Story board created is to explore the insurance claims for male drivers.
Point 1: Focus on the minivan and pickup and their car worth
This analysis tell us that minivan and pickup (other than SUV) has the most number of drivers, of
which many are used for commercial purpose.
Among the male drivers, the minivan and pickup claim value is very high compare to the other
vehicle types.
As the car age increases for these 2 type of vehicles, the worth of the vehicles still remain high.
This explains why male drivers are the dominant owners of these vehicle. They use the minivan
and pickup for their work and the vehicle still worth some money along the years.
It is also surprising to see sports car and SUV is really not popular among the male.
Point 2: Focus on minivan and pickup for male drivers
The analysis of male customers owning the minivan and pickup dominates the car insurance
company.
We can also observe that the minivan and pickup car owners are mainly lower educated or lower
income males, as I believe they are the ones who has stepped into the society to work.

From the income range, we can see that males use this type of vehicle in their initial working
years, probably they are setting some business or working as delivery initially. As the income
increases, we can observe that the number of male drivers owning them decreases.
Point 3: Male driver claim for minivan and pickup
Minivan and pickup claim value is very high compare to the other vehicle types among male drivers.
It is also surprising to see sports car and SUV is really not popular among the male.
Point 4: Insurance claim for minivan and pickup
This table shows the claim value of minivan and pickup is high in the initial years and the value will go
down.

Point 5: Claim amount for Minivan and pickup

Claim value for minivan and pickup is very high at the early stage of the car life. This can be due to poor
maintenance or inexperience driver that causes accident or repair to be done.
Claim value remain high in the 7th year and above probably due to wear and tear of the vehicle as a
result of age.

RECOMENDATION

Given the analysis of the client, car and insurance demographics some recommendation are provided in
the table below as enable the company improve their business.

Criteria Recommendation
 Insurance for SUV/Pickup/Minivan and Panel truck to be
Price range for car types provided at a higher premium.

Customer with lower past claims insurance should lead

to lower premium, unlike customers who has incurred
Based on past claims high past claims.

Based on past claims Customers with lower past claims should be provided
with an incentive for purchasing new insurance

Based on car worth and car Older cars should have lower insurance premium than
age new cars.
Insurance premium to be lowered at an entry point of
customers to gather a larger market share so as not to
will deter the customer from coming.
Based on Income range

Insurance for female should be higher than male,

Based on gender however, that will be too obvious to be discrimination.

Link
https://public.tableau.com/profile/mike3399#!/