Customer clustering in the health insurance industry by means of unsupervised machine learning

Abstract

To ensure competitiveness and relevancy in today’s highly digitised world, companies need to ensure that their focus is continuously on the client and on the experience they provide – while not having a negative effect on the organisation’s bottom line. A crucial step to achieving this is to get to know one’s customer base. With the vast amount of data available in a health insurance company, they are able to leverage on unsupervised machine learning techniques to segment their customers. This enables organisations to have a more tailored approach to their customers, identify market growth opportunities and gain competitive advantage.