PROJECT 26Intermediate
Insurance Renewal Rate Analysis
Business scenario
Orion Insurance's renewal rate for travel policies is far below other lines. The head of insurance asks why and whether it matters.
Problem statement
Compute renewal rates by product, channel and claim experience, and quantify the premium at risk.
Learning objectives
- Define the renewal denominator correctly
- Compare renewal by segment
- Quantify financial impact
Instructions
Renewal rate = policies renewed ÷ policies reaching end of term in the period. Exclude policies whose end_date is after the data cut-off.
Tasks
- Renewal rate by policy type and channel.
- Renewal by whether a claim was made and claim status.
- Premium at risk.
- Recommendations (is travel renewal even the right metric?).
Deliverables
- SQL
- Workbook
- Recommendations
Evaluation rubric
| Criterion | Weight | Excellent | Proficient | Developing | Insufficient |
|---|---|---|---|---|---|
| Data preparation & validation | 20% | Correct filters and grain; validation checks documented and totals reconciled. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Metric definition | 25% | Correct denominator and censoring. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Segment analysis | 15% | Claims and channel effects analysed. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Interpretation & recommendations | 25% | Clear, quantified conclusions tied to the business question, with limitations stated. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Presentation | 15% | Concise, well-labelled outputs a manager can act on without explanation. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |