Well- Being Score Evaluation for Health Insurance
Well- Being Score Evaluation for Health Insurance
Year: September 2023
Team: Sarang Deo, Swetlina Hota, Anuj K Singh
Background
A significant presence in India’s health insurance sector, this leading health insurance company prioritizes customer well-being and health, using a Well-Being Score (WBS) to track their health. For the customers, this score offers a clear understanding of their health journey with the insurance company allowing for regular monitoring and need assessment. From a business perspective, WBS is used for risk assessment in claims redemption.
About the Study
Well-being score is an important tool for the insurance company to provide the best services tailored to suit the individual needs of the customers. It also helps streamline the claims process and ensure transparency. Hence, there is a need to validate the existing WBS methodology, propose improvements to fulfil the criteria specified above, and investigate potential correlations with insurance business outcomes such as claims.
Methodology
The study involved an analysis of the Well-being Score which started with preparatory work, including reviewing the data, categorizing variables to provide structure for analysis, analysing missing values, and anomalies, and discussing the unique scores presented to customers. We initiated the process by generating WBS following the Standard Operating Procedure (SOP). Our objective was to validate it against the provided WBS scores.
Outcome
Our findings suggest important improvements and provide practical steps to enhance predictive accuracy and customer communication. Using data driven models can better the predictability of customer claims and identify high-risk customers. This information can be utilized to customize communication and messaging strategies tailored to groups.