BI Growth in Indian Insurance Sector : A Case Study

The insurance industry is now witnessing new competition in the market (such as risk management, branding, fraud, ROI, operational efficiency, etc.), due to which, insurers find themselves fighting in a larger battlefield. In this competitive world a successful insurer would be the one who is intelligent enough to have the foresight of the market and builds strategies to gain an edge over the competitors. A large pool of customers, increasing per capita income and low insurance penetration in developing countries such as China, India, Brazil, Thailand, make these insurance markets potential high growth candidates. In today's increasingly competitive business environment, Business Intelligence (BI) solution acts as a key factor. To stay ahead of the competition insurance companies require the ability to predict and also respond to the trends in the marketplace. This paper attempts to understand the challenges faced by the Indian insurance industry in view of the presence of multinational insurance companies in India which are equipped with up-to-date BI tools. BI tools applied on data collected from local insurance companies reveal that customer-oriented approach has been lacking. At the same, Indian companies are showing readiness to catch up with the BI era in order to move along with multinational companies. The current study shows the potentiality of the Indian insurance market in context of the global market and the case study applies some BI tools (Decision Tree Analysis and Multinomial Logistic Regression) on the data of an insurance company, availed by a local agent. The results generated by the tools have been validated by comparing them, and thus, it is shown that these tools are much appropriate for analysis of insurance data in a BI environment