As many insurance companies are ramping up their analytics environment, they start leveraging Big Data and the Internet of Things to provide innovative products, and personalized services to their customers.
Here are two examples that illustrate how big data data analysis is opening up new possibilities of growth for insurance companies. While the underlying concepts are not new, the technology is available today to bring these ideas to an entire new level.
1 - Lifestyle Analysis
According to their own statistics, Facebook has more than 1.32 Billion monthly active users. As an insurer, imagine the additional value you would get from tracking the life moments of your customers on social media platforms like this one.
The examples of events you would be interested in can cover:
- Adventure trips
- Weekend parties
- Mid-night drives
- Check-in at Pubs or Discos
By adding these social media insights to the existing information they already have on their customers like age, occupation and other relevant data, insurers can get business insights they never had before. They are now able to:
- better target their offering, develop personalized products, and increase their revenue
- get real-time customer data and validation to ensure that their customers have the right insurance plans
- take better underwriting decisions
- better manage their costs and drive better earnings
On their side, customers who decide to opt-in are able to benefit from better prices and better services.
2 – Telematics
Many insurers are already leveraging today telematics solutions to get more insights on the driving habits of their customers. By adding smart devices to their customers’ vehicles, insurers have now access to a breadth of data that will allow them to provide a more personalized service, while simplifying their processes.
Some examples of new information insurers are now able to gather include:
- Vehicle Speed
- Road selection
- Accident data
- Usage time and distance
By combining these streams of data with existing information they have on their customers, insurers are able to build new offerings and improve their services.
Telematics data brings the possibility for insurers to:
- provide pay-as-you-drive plans to their customers
- design a much smoother claim process
- analyze driving skills real-time to build customized policies and personalized plans
Whatever the scenario may be, by stepping up their analytics power, insurers have the opportunity to re-think their industry. Not only can they better run their businesses, but they can also create new products made for a rising generation of people willing to trade some of their privacy to get a tailored product that better fits their needs at a lower price.
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