MEDICAL INSURANCE ANALYSIS
TABLEAU
Health insurance costs have risen dramatically over the past decade in response to the rising cost of health care services. Let's dive deeper into Medical Insurance EDA by Arjunan K.
PROJECT OVERVIEW
The purpose of this project is to determine the contributing factors in health insurance cost by performing exploratory data analysis on the Health Insurance dataset. After that I will provide some business solutions to improve the Insurance Sales.
DATA DESCRIPTION
- age: Age of primary beneficiary.
- sex: Insurance contractor gender, Male/Female.
- bmi: Body Mass Index, providing an understanding of body, weights that are relatively high or low relative to height, objective index of body weight (kg / m ^ 2) using the ratio of height to weight, ideally 18.5 to 24.9.
- children: Number of children covered by health insurance / Number of dependents.
- smoker: Smoking, Yes/No.
- region: Beneficiary's residential area in the US, Northeast/Southeast/Southwest/Northwest.
- charges: Individual medical costs billed by health insurance.
- weight status:
BMI <= 18.5 -- Underweight
18.5 < BMI <= 25 -- Healthy
25 < BMI <= 30 -- Overweight
BMI > 30 -- Obese - Data Source
INSIGHTS FROM EXPLORATORY DATA ANALYSIS
- Features like Sex and Region has an almost balanced distribution.
- Majority of the policyholders fall in Overweight and Obese category.
- Most of the policyholders are Non-Smokers.
- Highest number of policyholders are in the range of 18 to 22 years old.
- A person who smokes and have a BMI above 30 (Obese) tends to have a higher medical cost.
- Older people who smoke have more expensive charges.
- Most of the policyholders have 1 to 2 children as dependencies.
BUSINESS SOLUTIONS
Considering from the business side of Medical Insurance, in order to improve sales we can:- Give awareness about the importance of insurance to the people who smoke.
- Approach the people who are underweight and healthy.
- Try to market people under 13 and above 70 years of age.
- Hit people with bigger family size, having much more dependencies.
- Give some better insurance plans to healthy and non smoking peoples.
General Ideas
- Give fewer options (More choices given to people, the less likely they are to purchase something).
- Provide options for personalizing the insurance for customers.
- Create a Referral System to get clients from current ones.
- Build a Pyramid Scheme to make the current users work for us.
- Study the performance of Competitors.
- Provide less paper work (More Digital).
- Give Faster and Easier options to start an Insurance.
- Launch an Email Campaign.
- Advertise Online.
- Filter the Online Reviews/Videos.
- Partnerships with Indirect Competitors having an audience we want.