Complete Segmentation
Complete segmentation is the most common type of analysis performed by Talon® to provide in depth insight into a portfolio. All policies fall into meaningful and mutually exclusive customer segments that are formed by finding multivariate, non linear interactions between policy risk characteristics. The segmentation is driven by an analyst defined goal such as loss ratio, loss cost, claim frequency, claims severity, growth trends, profit per policy, retention, etc. The parameters used for determining statistical credibility are user defined. A variety of correlation factors are produced to assist in selecting the most consistent and predictive model.
Profit Talon identifies the defining risk attributes that uniquely describe the segment. Using a simple web-based exploration and investigation tool, users can "drill down" into each customer segment and view all the carrier data elements, whether significant in the definition of the customer segment or not. An attribute's distribution across segments is viewable. For example, you could look at the spread of risk of your most profitable customers – where they are, who wrote them, what risk attributes they have, what specific values of each attribute they have, etc. In addition, all segment and drill down results can be exported to Excel.
Complete Segmentation is an excellent analysis type for use in target marketing, underwriting, and pricing.