Insurance premium optimization using motor insurance policies — A business growth classification approach

The most common business insurance is the general liability insurance, providing businesses with coverage for damage caused to others, as a result of their business operations. In this paper, we investigate how changes to the main insurance premium driver, a company's insured revenue, can be estimated using a random forest classification. We find that information about a business customer from its motor vehicle insurance policy, can be used to classify shrinking, stable and growing businesses. The integration of the model into an insurance CRM system, may provide an economical useful solution for traditional insurance companies to increase insurance premiums in an efficient way by only reaching out to the most promising companies to do business with.