Originally published on Quantzig: Insurance Analytics Helps a Leading Healthcare Insurance Company to Identify High-Risk Customer Segments
Reframing Insurance Analytics for Healthcare Insurance: A Case Study
To begin, let's delve into the significance of insurance analytics within the healthcare sector. A leading player in the healthcare insurance domain sought to explore the prevailing market dynamics concerning high-risk, least profitable, and most valuable customer segments. However, they encountered obstacles in gauging customer lifetime value and enhancing client retention. Additionally, the process of pinpointing optimal customers proved arduous and time-consuming. Consequently, the client enlisted the expertise of Quantzig's customer lifetime value specialists to identify high-risk customers across various segments.
Solution Offered through Insurance Analytics
Following a rigorous analysis, the collaboration enabled the client to segment customers based on loyalty, expected value, and overall customer worth. Moreover, it facilitated the assessment of customer data records and prediction of customer behavior. This, in turn, empowered the client to analyze customer conduct effectively and fortify against competitive pressures. The initiative also forecasted customer churn probabilities and future service purchases, fostering enduring customer relationships.
Insights into the Healthcare Insurance Market Landscape
In recent years, the global healthcare insurance market has witnessed fragmentation due to the presence of numerous companies offering diverse services at competitive rates. The escalating demand for healthcare services, inclusive of healthcare insurance, stems from the aging population and the uptick in chronic illnesses worldwide.
However, seizing opportunities within this market necessitates a grasp of the fundamental disruptions at play. Consequently, healthcare insurance firms worldwide are increasingly turning to customer lifetime value analysis to effectively identify high-risk customer segments.
In today's healthcare insurance landscape, customer lifetime value analysis is approached from the patient's standpoint. It aids in managing patient satisfaction levels, financial resources, and refining retention and acquisition strategies. Modern patients are well-informed, cognizant of prevailing circumstances, the gravity of their ailments, and alternative treatments. Customer lifetime value analysis facilitates an examination of a patient's value over their lifetime.
Quantzig's cadre of customer lifetime value specialists assists healthcare insurance clients in identifying patients on the cusp of leveraging medical interventions for treatment. Leveraging analytical algorithms, businesses can optimize the determination of healthcare needs probabilities.
