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Usage Based Auto Insurance
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Usage Based Auto Insurance

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Usage-based pricing represents a major innovation in auto insurance. This study from Crimson Hexagon examines how consumers discuss telematics products and discusses how social media listening can ...

Usage-based pricing represents a major innovation in auto insurance. This study from Crimson Hexagon examines how consumers discuss telematics products and discusses how social media listening can guide messaging on new and disruptive products and services.

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Usage Based Auto Insurance Usage Based Auto Insurance Presentation Transcript

  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. COMPANY & TECHNOLOGY OVERVIEW PERSONAL AUTO INSURANCE
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. GOAL: Understand the source of value and barriers to adoption of usage-based automobile insurance BUSINESS QUESTION: How can auto insurance companies effectively position a telematics product offering to consumers? METHOD: Develop a framework for understanding consumer affinity for usage-based insurance models by performing contextual analysis of social media conversations about auto insurance, as well as the industry’s leading usage-based insurance program in the US. CASE STUDY: USAGE-BASED INSURANCE
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. HOW DO CONSUMERS TODAY DISCUSS THEIR EXPERIENCES WITH AUTOMOBILE INSURANCE?
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. FINDINGS: A. Largest driver of positive conversation about auto insurance is the receipt of savings & discounts (14%) B. Onthe negative side, many consumers vent about the time spent policy shopping and poor customer service withinsurance companies (26%) C. Young drivers also express frustration withthe cost of auto insurance for their demographic (6%) AutoInsurance:ConsumerSentiment (1/1/13–7/24/13) 534,750Relevant Posts AUTO INSURANCE: GENERAL DISCUSSION A B C
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. FINDINGS: A. Largest driver of positive conversation about auto insurance is receipt of savings & discounts (14%) B. Onthe negative side, many consumers vent about time spent policy shopping and poor customer service with insurance companies (26%) C. Young drivers also express frustration withthe cost of auto insurance for their demographic (6%) AutoInsurance:ConsumerSentiment (1/1/13–7/24/13) 534,750Relevant Posts AUTO INSURANCE: GENERAL DISCUSSION A B C
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. HOW DO CONSUMERS TODAY DISCUSS THE INDUSTRY’S LEADING TELEMATICS PROGRAM, SNAPSHOT?
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. PROGRESSIVE: SNAPSHOT
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. FINDINGS: A. As expected, the primary incentive (14%)cited by consumers is the discounted rate with Snapshot B. Consumers also discuss their Snapshot test drive, expressing the desire for new savings on insurance premiums (8%) C. Some even reveal their plans to alter driving habits to save on premiums (5%) A C B HowdoConsumersDiscussProgressive’sSnapshot? (1/1/12–7/24/13) 3,707Relevant Posts PROGRESSIVE: SNAPSHOT
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. FINDINGS: A. Greatest concern (21%) among consumers is potential backfire: their rates may actually increase due to poor driving habits B. Another 11% voice concerns over Snapshot’s invasion of privacy, despite the lack of GPS tracking C. Many consumers are still confused about how the device works (20%) A B C HowdoConsumersDiscussProgressive’sSnapshot? (1/1/12–7/24/13) 3,707Relevant Posts PROGRESSIVE: SNAPSHOT
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. Skepticism ofSnapshot ThemesofConversation PROGRESSIVE: SNAPSHOT
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. • There isa need for marketeducationon how usage-based insurance works, and on best practices to take advantage of the cost savings potential • Reluctancetoadoptthetechnologystemsoutofprivacyconcerns,thoughSnapshotcontainsno GPSfunctionality • Auto insurance companies have an opportunity for more effective productpositioningthat aligns their telematics offerings withspecific consumer preferences and needs • Consumerstoday,especiallyyoungdrivers,findautoinsurancetobeextremelyexpensive • Obtaininganewinsurancepolicyandseekingcustomerserviceisadifficultandstressfulprocess AUTO INSURANCE: KEY TAKEAWAYS
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. IS YOUR FIRM READI?
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. SOCIAL INTELLIGENCE VALUE MODELS INFORMING A STRATEGICPLAN OF ACTION
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. Crimson Hexagon, founded in 2007, is the leading provider of analysis software that delivers business intelligence from social media data for global corporations. Powered by patented technology developed at Harvard University’s Institute for Quantitative Social Science, the Crimson Hexagon ForSight™ platform delivers the industry’s most comprehensive Big Data analysis capabilities for a variety of large-scale data sources. Clients include leading global organizations such as: Microsoft, Paramount Pictures, Starbucks, Simon & Schuster, Twitter, and many more. For more information go to: http://www.crimsonhexagon.com. CRIMSON HEXAGON
  • PROPRIETARY & CONFIDENTIAL © CRIMSON HEXAGON, INC. 2013. ALL RIGHTS RESERVED. Learn More About Crimson Hexagon’s BrightView™ Algorithm Click Here for An Introduction To BrightView ™ Algorithm