Project: Analyzing Telematics Motor Insurance Portfolio with Power BI

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Tung Lam

April 12, 2025

1. Overview

In today’s increasingly connected world, the insurance industry is undergoing a digital transformation—and telematics data is at the forefront. By combining vehicle data with traditional underwriting metrics, insurers can move beyond reactive risk management and towards predictive, behavior-based decision making.

To support this evolution, I developed an interactive dashboard using Power BI that analyzes the performance of a motor insurance portfolio with telematics data. This tool provides a comprehensive view of portfolio health over time—tracking premiums, claims, loss ratios, and risk distribution—while integrating policyholder driving behavior to enable smarter underwriting and pricing decisions.

This dashboard demonstrates my capabilities in:

Insurance analytics
Data modeling and visualization
Power BI development
Data-driven portfolio management

2. Data

The dashboard is powered by a sample motor telematics dataset at the policy level covering the period 2016 to 2019. It includes:

Policy-level data:
- Driver and vehicle details
- Product and policy type
- Sum insured
- Premiums and claims amounts
Telematics data:
- Speed and distance metrics
- Harsh braking events
- Driving time
- Mileage usage

This data allows the portfolio to be viewed from multiple dimensions—enabling performance evaluation, risk segmentation, and behavioral profiling.

3. Portfolio Performance Analysis

Understanding the evolution of portfolio profitability is central to effective portfolio management. The dashboard provides:

Premium and Claims Trends Over Time
Visualize overall portfolio growth and fluctuations in incurred claims across quarters or years.
Loss Ratio Analysis by:
- Product type
- Vehicle type
- Policy type
  This helps highlight which segments are more profitable or riskier than others.
Claims Frequency & Severity Analysis
Quantify how often claims occur and the average size of those claims.

How this helps portfolio managers:
These insights reveal high-risk segments and deteriorating trends early. For instance, if a specific vehicle type has consistently high loss ratios, underwriting guidelines can be tightened or premiums adjusted. Monitoring claims severity helps assess whether large losses are outliers or systemic. This allows data-driven interventions to maintain profitability.

4. Portfolio Mix Analysis

To manage risk effectively, insurers must understand the composition of their portfolio. This section explores:

Policy Distribution by:
- Region
- Vehicle Type
- Policy Type
- Engine Type
Sum Insured Baskets:
Analyze how the total risk exposure is distributed across different coverage levels.

Strategic insight:
A portfolio overly concentrated in certain vehicle types or high-risk regions may expose the insurer to adverse selection. Identifying imbalances enables rebalancing strategies, such as promoting underrepresented yet profitable segments or capping exposure in volatile regions.

5. Driving Behavior Analysis

Telematics adds a crucial behavioral dimension to risk assessment. This dashboard tracks and visualizes:

Driving Time Patterns – time of day or week the vehicle is driven
Car Usage Trends – frequency and duration of trips
Risky Behaviors:
- Speeding incidents
- Harsh braking
- Mileage trends

Value for the insurer:
By linking driving behaviors with claims experience, underwriters and actuaries can better segment risk. For example, frequent harsh braking may correlate with higher claims frequency. The insurer can then offer usage-based pricing or reward safe driving through discounts—aligning risk and reward more accurately.

6. Conclusion

This Telematics Motor Insurance Dashboard provides a 360-degree view of portfolio health and risk, marrying traditional insurance metrics with modern behavioral data. With dynamic visualizations built in Power BI, portfolio managers gain the tools to: