Dr. Lakshmi Mohan
The Payoff from Data Mining - An Example: Farmer’s Insurance
Based on traditional data analysis, drivers of sports cars were determined to be at higher risk for collisions than drivers of “safe” cars such as Volvos.
Hence charged them more for car insurance.
Data mining discovered a pattern that changed the pricing policy…
… As long as the sports car was in the household, the driver fit the profile of the “safe” family car driver, not the risky sports car driver