The Application Of Data Mining Technology In The Customer Relationship Management Of Insurancing Company

How to manage customer relationship in insurance company is vital to enhanceits competitiveness. A lot of scholars has made researches on customer relationshipmanagement in insurance industry, yet no consensus has reached. It worth noticingthat the previous researches mainly lies on the qualitative perspective, while very fewon quantitativeaspect. With the rapid development of data mining technology, peoplecome to realize the importance of applying this technology in customer relationshipmanagement in insurance companies. This paper thus combine the decision treealgorithm and the traditional customer relationship management theory to study theirapplication in insurance companies.Chapter one introduces the background and significance of this research, makesliterature review and identifies the paper’s structure and the research methods.Chapter Two lies the theoretical basis of this paper. It discusses the theory ofcustomer relationship management and the necessity of applying this theory toinsurance company. It also analyzes the real situation of how this theory is put intouse in China’s insurance companies nowadays. Chapter Three is the model andmethod part, with focus on the data mining technology. It elaborates on the decisiontree algorithm, and compares several algorithm of this method. Based on the theory ofChapter Two and Chapter Three, Chapter Four makes an empirical study. It analyzesthe samples of a certain insurance company, and dig into the hidden information ofthese data by using the theory of data mining technology. We find that premium is themain factor causing customer loss in the insurance company. The too ideal accuracymay due to the limited attribute value of the chosen data. On the other hand, however,it verifies the importance of premium. Chapter Five makes policy suggestion based onthe results of empirical study.This research uses the decision tree algorithm to make quantitative analysisabout the factors of enterprise customer loss.By combining quantitative analysis andqualitative analysis together, this research has strong theoretical and practicalsignificance. Also, the conclusion of this paper has certain reference value.