Insurance Data Science — Skills & Portfolio Guide

Insurance Data Science — Skills & Portfolio Guide

Insurance Data Science — Skills & Portfolio Guide

Practical skills, application areas, and project ideas to build a strong insurance-focused data science portfolio.

1. Core Application Areas

Where data science is most impactful in insurance.

Domain AreaTypical Use CaseExample
Risk ModelingPredict probability of claimsAccident likelihood per driver
Underwriting AutomationAutomate risk evaluationAI health risk scoring
Pricing OptimizationOptimize premiumsTelematics-based dynamic pricing
Fraud DetectionDetect suspicious claimsGraph-based fraud ring detection
Claims ManagementEstimate claim cost & triageRepair cost estimation from photos
Customer AnalyticsChurn & cross-sellCLV and product recommendations
Process Automation (NLP/LLM)Docs and summaries automationAuto-summary of claim reports

2. Key Data Science Skills

Technical skills to develop and highlight in your portfolio.

Data & Modeling

  • Data Engineering: SQL, ETL, pipelines
  • Statistical Modeling: GLMs, Bayesian methods
  • Machine Learning: XGBoost, LightGBM
  • Deep Learning: CNNs (images), Transformers (NLP)
  • Time Series: Prophet, SARIMA, LSTM

Advanced & Governance

  • NLP / LLMs: document parsing, triage, summarization
  • Graph Analytics: network-based fraud detection
  • Causal Inference: policy change effects, uplift
  • Explainability & Fairness: SHAP, LIME, Fairness tools
  • Visualization: Power BI, Plotly, Tableau

3. Important Domain Knowledge

Insurance concepts to learn and reference in projects.

  • Policy lifecycle: quotation → underwriting → claim → renewal
  • Loss & Combined Ratio: core profitability KPIs
  • Reinsurance: risk transfer mechanisms
  • Actuarial science: pricing and reserve fundamentals
  • Regulatory compliance: GDPR, Solvency II, fairness
  • Telematics / IoT: usage-based insurance data

4. Project Ideas for Your Portfolio

Concrete, portfolio-ready projects that demonstrate both technical skill and domain knowledge.

ProjectDescriptionTechniques
Claim Severity PredictionPredict repair/claim costRegression, feature engineering
Fraud DetectionDetect suspicious claim patternsClassification, anomaly detection, graphs
Customer Lifetime Value (CLV)Estimate long-term profit per policyholderPredictive modeling, survival analysis
Dynamic Pricing SimulationOptimize premiums under scenariosReinforcement learning, Monte Carlo
NLP Claim Triage AssistantAuto-categorize and summarize claimsTransformers, LLMs
Churn PredictionWho won't renew?Classification, explainability

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