Project Charter: Project 1 1/2

Case for change / Problem Statement Assumptions

There is a need for quicker turnaround time, swifter issue of policies and customer Distribution of a smoker & non-smoker is binomial
buying improvement from life insurance policies. The challenge life and health Age is linear and there is consistency
insurers face is to refine and simplify products without compromising strict
underwriting practices and its risk profile. The biggest dilemma is to eliminate the Enough storage/processing space will be given by UConn
practice of fluid tests, which 1. frustrate the consumer and can potentially result in servers
that customer going elsewhere (lost profit); and 2. create unnecessary costs for Selection dataset represent sample entire US population
the company, all while providing the best and most competitive price on the
market. Top Risks (max. 5)

Business Case 1. Failure to meet deadline

2. Target accuracy will not be attained given Company Xs data
There is a financial value and significant market share for life and health insurers source
by producing a high accuracy model that would predict smokers. The model would
help eliminate intrusive testing, such as fluid and other medical tests that result in 3. Not enough information provided by Company X resulting in
lost customers and ultimately lost profit to the company and additional incurred inaccurate outcomes
expenditures that could be avoided. Further, the model would make the prospect
to committed client process faster as well as offer a more competitively priced
simplified issue life insurance product. In Scope Out of Scope
Risk assessment during the underwriting process is very cumbersome and
complicated. In order to ease and shorten the process, a desired accuracy level Use Company Xs proxy as a Non-US population
must be met. The goal is to exceed Company Xs minimum predictive accuracy benchmark for our model
and balance both sensitivity and specificity of the model. This would ultimately accuracy
make the underwriting process more effective and allow for swifter issuing of the
policy. Exploration of data Predicting Company X
There are considerable amount of studies done on smoker propensity and approving a customer for a
smoker cessation. Utilizing this data as complementary information along with policy
data analytic approaches would be one avenue to help detect fraud as well as
improve the model and target accuracy. As an example, can data such as Researching forecasting tools External usage of copyrighted
reviewing the persons motor vehicle report, social media pages, credit reports data
and time perspective, the propensity to consider short-versus long-term
consequences of ones actions, aid in improving a smoker propensity model? Leverage consumer/public data
Would other healthy living indicators serve as predictors for a non-smoker? Can Constraint Matrix
sources
Objectives / Goal
demographics, suchstatements
as highest smoking rate being Kentucky, attribute to a
smoker? MOST SOME LEAST
Achieve a 90% predictive accuracy on the smoking propensity model, which
would allow for a common proxy for model accuracy.
Explore any avenues to surpass Company Xs accuracy level using innovative SCOPE X
data sources publicly available and/or consumer data as predictors

TIME X
 Project Charter: Project 1 - 2/2
Deliverables & Milestones (High Level Milestone Plan) Project Organization
TENTATIVE SCHEDULE
Sponsor
Project Start Date: Project End Date:

Key Deliverable Milestone Name Planned MS

Steering Board (Advisor/Professor)
(MN) Date
Members (UCONN)
Project Charter Sponsor Status Project Manager
Meeting

First-dry run presentation Mid-term Tollgate .

Signof
Final Report Final Reporting Role Members
Team Signature Date

Sponsor
Slide deck presentation Final Toll-gate

UCONN Member

UCONN Member

UCONN Member

UCONN Member

UCONN Member

UCONN Member