Melak12/week-3-insurance-risk-analytics

cutting-edge risk and predictive analytics in the area of car insurance planning and marketing in South Africa. # Week 3 - End-to-End Insurance Risk Analytics & Predictive Modeling This week’s challenge centers on analyzing historical insurance claim data to help optimise the marketing strategy as well as discover “low-risk” targets for which the premium could be reduced. The analysis covers the following key areas: - Insurance Terminologies - A/B Hypothesis Testing - Machine Learning & Statistical Modeling ### Business Objective Your employer AlphaCare Insurance Solutions (ACIS) is committed to developing cutting-edge risk and predictive analytics in the area of car insurance planning and marketing in South Africa. You have recently joined the data analytics team as marketing analytics engineer, and your first project is to analyse historical insurance claim data. The objective of your analyses is to help optimise the marketing strategy as well as discover “low-risk” targets for which the premium could be reduced, hence an opportunity to attract new clients. The historical data is from Feb 2014 to Aug 2015. ### Keywords 1. **Premiums**: When you purchase an insurance policy, you'll be required to make regular payments, known as premiums. These payments are typically made monthly or annually and are the cost of maintaining your insurance coverage. 2. **Total Claim**: A claim is a formal request to your insurance company for coverage or reimbursement for a loss or damage. It's essential to follow the claims process outlined in your policy. 3. **No-Claims Discount**: Many insurance companies offer a no-claims discount to policyholders who haven't filed any claims within a specified period. This can lead to lower premiums over time. 4. **Deductible/Excess**: This is the amount of money you're responsible for paying out-of-pocket on a claim before your insurance coverage starts to pay. For example, if you have a $500 deductible and your car sustains $2,000 in damage, you'd pay the first $500, and your insurer would cover the remaining $1,500. 5. **Underwriting**: Underwritin …