In the past, car insurance companies had little driving behavior data to use when determining customers’ premiums. They were dependent on drivers’ accident and ticket history, gender, educational background and age. Now, big data and analytic technologies are giving insurance companies more information about their customers than ever before. With the assistance of telematics, providers can collect data on clients’ habits to determine premium rates and terms. This type of technology in some parts of the world is already being tested!
Using driving data to improve customer service
If insurance companies have specific data on individual customers, they can use analytic technologies to improve their customer service. For example, if a driver always slows down when making turns, and that person has never even hit another car while parallel parking, an insurer can reward the customer with special offers. This can increase customer loyalty and retention.
Furthermore, insurance companies that receive data pointing to car troubles and inform the customer about the better rates for clients with newer, safer cars. The customer would be happy with a new purchase, and the insurance company would benefit from insuring a less-risky automobile. Leading to a better rate for the customer!
Improving driving habits and increasing road safety
Customers will also have the chance to log into the insurance companies’ sites and look at their driving habits. With access to this information, they can see the truth about their driving firsthand, and they might change their habits in order to save money.
Data sharing programs are a win-win for insurance companies and their clients. Drivers should have the chance to participate, and the insurance companies must responsibly communicate to their customers the nature of the data collected. With this transparency, insurers and their clients can benefit. At the same time, drivers can look at their habits and make safer decisions on the road.
Moveco thrives to be one of the ways insurance companies can incentivize drivers to drive better. Apart from giving a discount only on renewal at the end of the year, Moveco tokens could also be awarded at a higher frequency as immediate benefit for driving better and safer.
