Länsförsäkringar

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Länsförsäkringar comprises 24 independent, regional insurance companies collaborating through the jointly owned Länsförsäkringar AB and its subsidiaries. Länsförsäkringar is Sweden’s only customerowned and locally anchored bank and insurance group, providing a complete range of banking and insurance services to its private and corporate clients, as well as farmers. The company offers total solutions based on different combinations of non-life insurance, accident and medical insurance, life assurance, pension-saving plans, fund savings and various banking services.

Challenges
Länsförsäkringar’s campaign selection was based on the experience of the sales force and the sales managers. There was no systematic way to learn from customers’ existing behaviors and needs. The work carried out in order to obtain information from different data sources was inefficient and was found to be administratively cumbersome.

There was a great need for a more effective solution where by information could be structured and analyzed more systematically in order to optimize campaign selections and the products offered to customers.

Solution
Länsförsäkringar implemented IBM SPSS predictive analytics software to analyze large quantities of data from various data sources and effectively identify different patterns of customer behavior. With 3.2 million customers and, therefore, an abundance of data, IBM SPSS Modeler data mining workbench made the campaign selection and analysis process much easier for Länsförsäkringar’s analysts. By building and deploying models, Länsförsäkringar can now analyze customer behavior and needs and leverage this information to customize its marketing campaigns. The solution also enables the analysts to visualize the results of analyses in an instructive manner.

Result
According to Ola Gustafsson, Customer Data Analyst at Länsförsäkringar, “The efficiency of the analyst team has been enhanced significantly since the new solution was implemented – analysis work which used to take a week can now be done in a day and a half.” “We have also seen a qualitative improvement, with analytical results that are up to four times more reliable and accurate,” he added. “In addition, it has been possible to standardize the way the work is done, so it is now much easier for the analysts to make changes during the business process without the need to rework various elements.”

Today, Länsförsäkringar has a very straightforward way of generating models to predict the likelihood of a particular customer having interest in a specific insurance policy – systematic knowledge which makes it possible to select the optimum customer mix for each campaign, making campaigns considerably more effective than before. The ability to analyze customer behavior and needs has resulted in Länsförsäkringar moving from executing two nation wide direct marketing campaigns per year to running 13 unique, customer-specific campaigns a day which are used for face-to-face meetings with customers.