Insurance Edge is all about looking into the future. Now that we are driving fewer commuting miles, the risk surrounding car insurance has changed for millions of drivers. Plus new cars are now stacked with all kinds of ADAS systems, Alexa voice activated features, WiFi and more – who gets access to that data? Mike Brockman, CEO at ThingCo offers some insights into data sharing and how it impacts on the new generation of PAYG and telematics based car insurance brands.
As consumers become more comfortable using apps for car insurance does that make data sharing consent that bit easier?
Under GDPR, insurance providers must acquire active, informed consent from customers using an app, before collecting or processing their personal information. Therefore, the consent process is built into the apps in the market. However, the fact remains that while consumers may consent for their data to be used, the insurance industry has done a poor job at making that data work for the consumer in the form of real value added benefits.
Barriers around trust and big brother are broken down by being absolutely clear that the data belongs to the driver – they can choose how it is used to their benefit, spelling out the advantages, being transparent and flexible.
With next generation telematics including the use of voice and AI, the data is no longer a one-way street direct into the insurer. You can feed that data back to the customer and develop additional services such as a voice alert when they have been driving for too long without a break, an incentive of a coffee at the next rest-stop and of course crash assistance and claims support.
With the ability to help manage risk, improve the claims journey, provide fairer premiums, consumers will see this as real added value, and for once may see the purchase of insurance as a value for money proposition.
Fundamentally, insurers must make it interesting and demonstrate how they are making the data work for the customer – talk about the collision response, the claims process, offer incentives for safer driving. It is all about making consumers feel empowered by the product.
Rewards are an integral part of telematics and some health policies, is gaining that agreement to win rewards and share data the way to build customer loyalty long term?
The key thing here is getting trust from customers – if they don’t want to use data for certain services, give them the opportunity to opt out, but tell them on the other hand what the benefits would be, make things more visible and make things more flexible.
The essential thing is to use the rewards services to really strengthen the relationship with customers, build loyalty and even make it fun. It’s really important to incentivise customers to drive better as it reduces claims frequency, and the industry can get creative and come up with good ideas – points for referring a friend, points for watching a safety video.
Next generation telematics allows a great deal of innovation using the insights from real-time voice and driving data, it allows engagement and the opportunity to provide incentives throughout the lifetime of the policy and at renewal without any big brother feeling about it.
How can insurers strike a balance between offering add-on products at the right time, and potentially annoying consumers with too many deals and offers?
You need to be timely and relevant using the real-time data from the device to ensure your messages reach the customer at exactly the right time – next generation telematics with voice allows you to do that in a way no other insurance product can. If you think about the insights you are able to gain based on the movement of the car – where they shop, work, live, play sport – the marketing opportunities are enormous. By gaining explicit consent from the customer at the outset and making your offers absolutely relevant to their lifestyles, their travel habits and giving them the ability to easily opt out at any time, you can build trust and engagement in your brand.