Use Business Intelligence in Retail Insurance Marketing

Insurance industry serves the risk management needsstrategies based on the segments. By using simple
of all types of organizations, individuals or group ofmarket segmentation techniques Insurers can segment
individuals. In doing so, it develops various insurancethe market based on some criteria pre-decided by
products meeting various insurance needs and try tothem. But, they can not be sure that the criteria
provide these products to various individuals or groups.selected by them is the best one. Clustering used as
Thus, there are retail markets for insurance productspart of Business Intelligence Technique mines the data
through which insurance companies do significant partand identifies valuable clusters which otherwise might
of their business.have been ignored.
Understanding the customers or group of customersSimilarly, there may exist various hidden association
and approaching them with appropriate products inpatterns in the data. It may be that if a set of
effective way are critical success factors in retailconditions are met the chance of meeting some other
insurance marketing. Business Intelligence techniquesset of conditions are very high. Such patterns can be
help in doing these.converted to association rules and used in insurance
Business Intelligence techniques are actuallyproduct design, services packaging, customer
mathematical and statistical techniques that are used inrelationship management etc.
business. Analytical techniques have been in use inBusiness Intelligence techniques, if properly applied in
business for quite long time now. But Businessretail Insurance marketing can lead to a situation in
Intelligence techniques differ from them. While usingwhich each customer can feel that the insurance
analytical techniques, users have some questions orpolicy has been designed keeping his requirements in
requirements in mind and they apply the techniques tomind. Customers can get the feeling that they are
get the answer to those pre-decided questions.individually being cared. Insurance companies can
However, in case of Business Intelligence techniquesdesign and launch various Insurance products
users are not clear about the questions itself. Thesecustomized to the requirements of various market
techniques find valuable hidden patterns in the datasegments. Any significant change in customer
that can be used in taking business advantage.preferences can be quickly identified and Insurance
Using these techniques one can cluster the retailcompanies can get prepared to handle that.
customers and formulate marketing strategies suitableThere are various Business Intelligence tools available
for different clusters of customers. Insuranceas integrated part of the software used by Insurance
professionals specially working in retail insurance orcompanies. These tools can be effectively put on use
micro insurance sector know the importance ofto take the above business advantages.
market segmentation and formulating various