Industry

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Insurance

 

Customer Profile

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The client is a well-known mid-sized insurance company based in North America and specializes in vehicle insurance.

The client offers a range of insurance products including coverage for auto, trailers, and boats.

 

Situation Analysis

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General purpose insurance companies faced a crunch in business growth as the automobile-insurance market underwent a gradual decline. Specialty insurers were gaining traction from niche customer groups. The client needed to come up with a differentiated product/service to fuel the company’s growth. The client’s gross profit margin in automobile and trailer insurance during Q1 & Q2 had decreased by 7% and 9% respectively. An obvious business solution was to offer differentiated insurance premium to different customer groups to help tailor the insurance service deals for more profitable customer groups. Acquiring this capability depended on tracking driver behavior in each of the vehicles insured by the company.

 

Another challenge that the client faced was filing multiple claims by customers who reported recurring accidents. This increased the service cost structure that the company had to bear. The company also wanted to promote safe driving by giving incentives to drivers for adopting a safer road behavior. Drivers would get bonus points for driving company insured vehicles safely. However, offering new services required that the insurance company acquired real-time behavior observation technology to monitor each driver’s vehicle driving behavior. Our client had a rough idea of what the company needed but was unsure of the technology solution that could deliver the business results.

 

Specific Problems

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• The client had numerous statistics regarding road accidents of vehicles insured through their company. The company however lacked a tangible method to track driver behavior at an individual level. Tracking driver behavior at an individual level had become essential for offering new premium packages.

• A significant percentage of automobiles and trailers, insured by the company, reported above-average accident ratio. It drove the company’s average profit margin from these vehicles to as low as 2% per annum. To help identify the drivers who would likely exhibit risky driving behavior, thereby resulting in more number of accidents, Our consultants analyzed that driver ranking and behavior monitoring was essential to categorize drivers. It would allow the client to offer lower insurance premiums to low-risk drivers and a higher insurance premium to high-risk drivers.

• After an initial assessment of the client’s business needs, the technology problem was narrowed down to the need for developing an innovative and real-time driver monitoring system.

 

The Solution

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• The first part of the solution was to select an appropriate device that can be plugged into the vehicle to acquire data, and relay it back to a server. A prefabricated data logging device was selected for this purpose. The second part of the solution was to manipulate/reuse the data stored on the server and provide actionable intelligence on the User Interface at client’s end. MS Azure was used to build, deploy and manage the tracked data and deliver actionable features to the end client

• The main technologies used in developing the solution were cloud computing (Amazon Web Services), 3G & 4G GSM networks, Microsoft .net Framework, Microsoft Azure and Microsoft Windows Services.

 

Key features

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1. Number of Trips

2. Km Driven

3. Fuel

4. White points

5. Overall Score