File Type: PDF
File Size: 2.31 MB
Number of Pages: 55
The rapid growth of data and computing power has led to many applications that impact the everyday lives of consumers. This impact is seen in many areas, including financial services, retail shopping, and even the movie going experience. One of the areas of financial services that have experienced this impact in a significant way is insurance. Insurance companies have become key consumers of “big data”, and the analysis of this data has led to fundamental shifts in the way that insurance companies design, price, and deliver products.
One specific new source of data for insurance companies that has the potential to permanently change the auto insurance landscape is telematics. Information about vehicles and how they are driven can be captured in real-time and transmitted directly to insurance companies. This allows for the most direct insight that the industry has ever had into the quality of the driver and ultimately what it will cost to insure that customer. Insurance companies have recognized the potential value of this information, and many companies are in various stages of development and implementation of Usage Based Insurance (UBI) offerings – auto insurance based on telematics information.
Although most insurance companies are embracing potential value of the usage based insurance programs, the customer reaction to these programs has not been 100% positive. There is certainly value for the insurance customer in telematics data: discounts for safe driving, information on how the insured can become safer drivers, and other additional potential services. However, to some customers these benefits come with concerns, and understanding both positive and negative customer reactions to UBI plans will be a key component of the overall long-term success and consumer acceptance of these programs.
In this research report, we provide the results of an analysis of consumer reactions to Snapshot, a UBI plan which has been implemented by Progressive Insurance. Progressive currently has the largest number of customers insured under a UBI plan in the United States and therefore has the most available information on consumer reactions. The information used in this analysis was obtained from Twitter and analyzed over a nine month period. The results from this analysis can provide insurance companies with key information on how customers are reacting to Snapshot specifically and UBI plans generally. This understanding can then be used to address key consumer issues as companies design and refine their UBI plans.
To the maximum extent permitted by applicable law, all such information, software, products, services and related graphics are provided "as is" without warranty or condition of any kind. Pinnacle Actuarial Resources, Inc. and/or its suppliers hereby disclaim all warranties and conditions with regard to this information, software, products, services and related graphics.
Pinnacle Actuarial Resources, Inc. specifically excludes all implied warranties including but not limited to warranties of merchantability, fitness for a particular purpose, title and non-infringement.
To the maximum extent permitted by applicable law, in no event shall
Pinnacle Actuarial Resources, Inc. and/or its suppliers be liable for any direct, indirect, punitive, incidental, special, consequential damages or any damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the use or performance of the
Pinnacle Actuarial Resources, Inc. web site, with the delay or inability to use
Pinnacle Actuarial Resources, Inc. web site or related services, the provision of or failure to provide services, or for any information, software, products, services and related graphics obtained through the
Pinnacle Actuarial Resources, Inc. web site, or otherwise arising out of the use of the
Pinnacle Actuarial Resources, Inc. web site, whether based on contract, tort, negligence, strict liability or otherwise, even if
Pinnacle Actuarial Resources, Inc. or any of its suppliers has been advised of the possibility of damages. Because some states/jurisdictions do not allow the exclusion or limitation of liability for consequential or incidental damages, the above limitation may not apply to you.
If you are dissatisfied with any portion of the
Pinnacle Actuarial Resources, Inc. web site.
January 18, 2018
January Apex Discussion Series -
Statements of Actuarial Opinion at Year-End 2017
February 15, 2018
February Apex Discussion Series -
Diagnosing Your Predictive Model
Full Site Map
Pinnacle is an actuarial firm focused on property/casualty insurance, including alternative markets, captives, self insureds, enterprise risk management, predictive analytics, commercial lines and more. We serve trucking, insurance, health care, medical professional liability, reinsurance, workers compensation, public entities and other companies and concerns.
Our services include expert witness, loss reserving, litigation support, pricing, ratemaking, rate filing, statements of actuarial opinion, feasibility studies, capital modeling and other actuarial services and products.
Phone: (309) 807-2300
Fax: (309) 807-2301
Copyright © 2003 - 2018 Pinnacle Actuarial Resources, Inc.