Analysis of Car Insurance Brokerage Services

Running Head: DATA ANALYTICS AND BUSINESS INTELLIGENCE
Data Analytics and Business Intelligence
Name of the Student
Name of the University
Author Note

1DATA ANALYTICS AND BUSINESS INTELLIGENCE
Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Customer’s worse off using a broker...........................................................................................3
Average savings using a sports or luxury car..............................................................................3
Claim of Insurance Brokers Association.....................................................................................4
Incentive for Customer................................................................................................................4
Top performing Broker................................................................................................................4
Dissatisfaction of Customers.......................................................................................................5
Average savings on insurance premiums....................................................................................5
Savings based on Valuation method............................................................................................5
Gender comparison based on Diamond NCBR...........................................................................6
Conclusion.......................................................................................................................................6
Appendices......................................................................................................................................8
Task 1...........................................................................................................................................8
Task 2...........................................................................................................................................8
Task 3...........................................................................................................................................9
Task 4.........................................................................................................................................10
Task 5.........................................................................................................................................11
Task 6.........................................................................................................................................12

2DATA ANALYTICS AND BUSINESS INTELLIGENCE
Task 7.........................................................................................................................................13
Part a..........................................................................................................................................13
Part b..........................................................................................................................................14
Part c..........................................................................................................................................15

3DATA ANALYTICS AND BUSINESS INTELLIGENCE
To: Daniel Rand
From: Mercedes Knight
Subject: Analysis of car insurance brokerage services
Introduction
Dear, Daniel this is in response to your mail regarding car insurance brokers. We obtained a
sample data of 400 customers from the insurance brokers association. We present the analysis of
the information with reference to the savings made by customers who have taken the aid of
brokerage firms. The detailed analysis of the insurance savings was made possible since the data
contained information on gender, NCBR, valuation method, type of vehicle, broker’s and
satisfaction level of the customers.
Main Body
Customer’s worse off using a broker
The analysis showed that the number of customers who paid less insurance amount in this year
than previous year is 72. Similarly, 25 customers paid insurance amount equal to last years.
Further, it was found that 303 customers paid more insurance amount than last years. Thus it was
estimated that the proportion of customers who were worse off is 18.00%. The estimate of
customers who are worse off ranges from 14.24% to 21.76%.
Average savings using a sports or luxury car
From the sample data it was found that of the 400 customers who were sampled 111 customers
had either a luxury car or a sports car. The average savings of all such customers is $589.5135
with a standard deviation of $359.39. From the analysis of the sampled data we can say with
95% confidence that the average savings of customers owning a luxury or sports car lies between
the range of $521.91 and $657.12.