Presenters: Alexander Buchwald and Lars Krieger
Climate change is impacting everybody, but costs are not shared equally. People with low socioeconomic status in the global south are most vulnerable but are often not aware of and insured against risks like floods and draughts. Micro insurances are an effective measure to help these people by providing low-fee coverage of high-risk events. Gaining strength in numbers, these insurances suffer from high churn rates and seek to maintain customers to provide stable support. The Positive Thinking Company used real-world insurance data to identify factors leading to insurance churn and used them to target people that are at risk to suffer from climate change but are likely to quit. The team used publicly available economic and climate data to add features that allow individuals to determine their personal climate change risks depending on geographic and socioeconomic factors to raise general awareness and insurance benefits. This creates an incentive to use the tool to their benefit, while allowing insurances to target a wider audience, which strengthens overall insurance resilience. This use case shows the power of ML and SAS Viya to create a win-win situation with high impact for people in need.
