The document discusses usage-based automobile insurance and consumer sentiment regarding insurance policies and telematics programs. It finds that consumers are most positively engaged when discussing savings from insurance discounts. However, they often complain about the process of shopping for insurance and poor customer service. The document also examines discussions around Progressive's Snapshot program, finding that while consumers like potential discounts, many are concerned about rates increasing or privacy issues. Overall consumers express a need for more education around usage-based insurance models.

1. PROPRIETARY & CONFIDENTIAL
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COMPANY & TECHNOLOGY OVERVIEW
PERSONAL AUTO INSURANCE

2. PROPRIETARY & CONFIDENTIAL
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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

3. PROPRIETARY & CONFIDENTIAL
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HOW DO CONSUMERS TODAY
DISCUSS THEIR EXPERIENCES WITH
AUTOMOBILE INSURANCE?

4. PROPRIETARY & CONFIDENTIAL
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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

5. PROPRIETARY & CONFIDENTIAL
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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

6. PROPRIETARY & CONFIDENTIAL
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HOW DO CONSUMERS TODAY
DISCUSS THE INDUSTRY’S LEADING
TELEMATICS PROGRAM, SNAPSHOT?

7. PROPRIETARY & CONFIDENTIAL
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PROGRESSIVE: SNAPSHOT

8. PROPRIETARY & CONFIDENTIAL
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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

9. PROPRIETARY & CONFIDENTIAL
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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

10. PROPRIETARY & CONFIDENTIAL
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Skepticism ofSnapshot
ThemesofConversation
PROGRESSIVE: SNAPSHOT

11. PROPRIETARY & CONFIDENTIAL
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• 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

12. PROPRIETARY & CONFIDENTIAL
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IS YOUR FIRM READI?

13. PROPRIETARY & CONFIDENTIAL
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SOCIAL INTELLIGENCE VALUE MODELS
INFORMING A STRATEGICPLAN OF ACTION

14. PROPRIETARY & CONFIDENTIAL
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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

15. PROPRIETARY & CONFIDENTIAL
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