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Insurance industry in India is having a long history. It has become one of critical business due to introduction of large number of competitors in last few years. It is a data rich industry and most of its data is not utilized. Business intelligence is the use of information technology for gathering, storing, analyzing, and providing access to data to help managers to make better decisions about their business. Data mining plays an important role in achieving business intelligence. Consequently, it improves the decision-making of an enterprise. Hence, business intelligence needs to be incorporated so as to provide the solution to the problems arising in insurance. Business intelligence can be described by combination of various components namely: data warehouse, online analytical processing, and data mining.