The auto industry is evolving, but many insurers are struggling to determine just how to leverage big data. Here’s how to make it work for you.
Autonomous cars. The rise of ridesharing. Biometric vehicle access. The auto industury is changing. Yet amidst all this change, auto insurance has had a difficult time keeping up to reflect numerous industry transformations. As evidence, a recent report from the International Institute for Analytics identified the insurance industry as the lowest ranking industry for analytics maturity.
But despite these struggles, it doesn’t mean the insurance industry is doomed to drop the ball on big data. In fact, here are three ways the auto insurance industry can make the most of big data insights.
Tap into data for competitive rates
For auto insurers, keeping rates competitive is vital to success. By leveraging big data to identify demographic trends, track vehicle usage, and pinpoint individual driver coverage needs, auto insurance pros can gain a competitive advantage on pricing.
Ramp up roadside assistance
Roadside assistance is a huge value-add for customers—and when a need presents itself, the quicker help arives, the better. By leveraging telematics to track individual driving patterns, insurers can ramp up roadside assistance with quicker identification of incident location and emergency needs.
Get creative with service contracts
Service contracts can cover a multitude of issues, but not everyone has a need for all that could be covered. Much like rate optimization, you can use telematics to zero in on where individual drivers may need more assistance, rather than forcing them to pay a set rate for prepackaged service.
Want to learn more about what the future holds for the auto industry? Check out our blog on the high-tech automotive future and what it means for insurance providers.