Auto insurers are already using telematics (vehicle tracking & diagnostics) including information such as distance driven and location to assess the likelihood of a driver having an accident. What if your insurer agreed to lower your insurance premiums in exchange for obtaining access to all of you car's data: speed, location, operating hours, distances driven, traffic conditions and mobile usage whilst driving?
Perhaps you’d be concerned with exchanging this significant private information and wouldn't take up the offer, but would you accept it for the teenage drivers in your family, hoping it would make them drive more safely?
AAMI's latest campaign is putting this premise to the test. They're attempting to prove who's the better driver via their AAMI Safe Drive App. The app records your journeys and analyses your driving behaviour. It then provides you with a driving score and feedback relating to your journeys. Factors taken into account include length of trips, speed, acceleration, braking and mobile phone usage. The higher score you achieve, the safer driver they consider you to be.
It's a brilliant strategy with a fundamentally noble cause of making roads safer for all users (whilst also providing AAMI with a richness of data for underwriting that they've never had access to before). The app includes gamificaiton elements such as badges allowing users to climb a leaderboard, rewards for safe drivers with free roadside assistance and a corresponding competition providing the possibility of winning the grand prize of $100,000.
Usage of telematics is commonplace in the UK car insurance market where driver behaviour scores can be used to demonstrate a driver's propensity to have an accident and also enhance insurer underwriting sophistication. The ultimate goal for insurers is to drastically cut claims.
AAMI are upfront in their Privacy Statement stating that they collect personal information via the app so that "we can… [provide] you with any benefits or rewards derived from the App and underwriting and pricing your policy or any of our products or services” as well as “assess and investigate any claims you make”. So effectively they will use the information that they gather as a factor in how your policy is calculated (either positively or negatively).
Are users fully aware of how their data is used? According to the Internet Society’s Global Internet User Survey, only 16% of internet users read privacy policies and of those, only 20% actually understand them. So it would seem that the majority customers wouldn’t have made the linkage of their chance to win $100,000 and the future impacts on their policy.
Could this data also become an asset that could be sold to help better understand driving behaviours and other driving data? Strava, a mobile fitness app that tracks tens of millions of cyclists and runners recently trialed selling aggregated usage data to town planners to help provide better planning and development outcomes for cyclists and pedestrians.
How will the abundance of customer usage data transform your industry? How would you improve your product if you had access to amazingly rich customer data?
See AAMI's app in action here: