I picked up this interesting talk and wanted to share. It was interesting because the talk highlighted some very good monetization use cases that insurers are thinking particularly around ways to monetize connected car data.
Charles Givre is a Data Scientist at Booz | Allen | Hamilton Consultancy and delivers a presentation in which the first 18~ mins is a just a high level primer but around 19 mins into the talk he starts to highlight some really interesting applications that can be used with the data that is collected. It all leads to the behavior of the driver, his trips, times he leave home to times he returns. I love the Concur example where the data can be shared and your car mileage report can be created and ready for you to submit. A lot of these examples and more will be about creating additional personalized ‘shortcuts’ for an individual.
Here is the link to the video;
Around the 22nd minute Charles starts to highlight how the driver route can be calculated, by using geo-coordinates lat/long one can identify the customer is visiting a local grocery store on particular days in the evening. You can tie that with socio-demographic data about customers and ‘exchange’ this data to retailers who can better profile a customer. For example if you know what make and model of the car he is driving, for e.g. BMW, Mercedez etc you can deduce/infer what his propensity to spend is going to be; over time this information could be very valuable but obviously impinges very heavily on personal privacy issues.
By the 28th minute he talks about driver behavior, acceleration, braking etc..how this information can help profile a drive and also how this could be valuable for fleet management company to reduce reduce insurance costs. Around the 34th minute he goes into what the uses of this information could be for;
- Fuel optimization – especially for fleet management companies
- Risk Management – track driver habits and rewards customers
- Fraud detection – this was interesting but not fully baked use case IMO.
Car Warranty etc. was not mentioned but that is also one more possibility.
All of these are very interesting applications of connected car data. Apply this to a 'Commercial Data Exchange' similar to 'City Data Exchange' solution developed by HCC for Copenhagen and now you have the possibility to drive a new solution to the insurance market and drag infrastructure, software (HSDP (in-vehicle real-time streaming analytics)), services and consultancy (HCC) business opportunities.
This is something we are looking to introduce at Allstate and its a perfect case for Digital Transformation..!