FIND THE ANSWERS TO THE 4 MOST IMPORTANT QUESTIONS ABOUT DATA COLLECTION FOR UBI PRODUCTS
The ongoing 4th industrial revolution or Industry 4.0 changed many aspects of business and day-to-day life. Smart technology, including machine-to-machine communication and the internet of things, is continuing to make life easier and faster. One of the side effects of all that progress is the increasing value of data.
Keeping that in mind, there is the ongoing question of data security which became a rising global issue. Countries started to protect themselves and their citizens with various data protection laws, one of the most popular being the European General Data Protection Regulation (GDPR). According to the official GDPR website, it is the strictest privacy and security law in the world. Though it was drafted and passed by the European Union (EU), it imposes obligations onto organizations anywhere, so long as they target or collect data related to people in the EU.
What kind of data is collected for UBI?
As you well know, the entire insurance industry is based on data from the very beginning since it defines the risk estimation and policy price. With usage-based insurance (UBI), the value of data needed to sell and use these types of products is much higher. You will not only collect personal data like demographic details or accident history, but you also collect user behavior data. For motor UBI this includes acceleration, braking, speeding, cornering, lane changing and phone usage while driving like texting, calling, phone fiddling and more. You will also want to know more about the type of trips your clients are taking and therefore track their trip duration, road types, route choices, and more similar data.
The first step to start using that data for UBI product creation is to get consent from your clients to collect it in the first place.
Are clients willing to give consent for data collection?
Some of you might be surprised by the percentage of end-users willing to give consent to share their data. According to the 2019 Accenture Global Financial Services Consumer Study, 88% of users share personal data with businesses.
But there is one golden rule to follow before asking for it – a fair value proposition. We talked about the importance of value proposition in our Customer Engagement article, and the central premise stays the same:
If you offer a product of significant value to your clients, they will be willing to share their data with you.
What happens to data if a client backs out of the policy?
Our platform is customizable to country regulations regarding saved client data. For European countries that work under the protection of GDPR, every user has the right to be forgotten. This means that, per your request, the client data will be erased from our database. This includes the previously mentioned personal, behavioral, and trip data.
How can you encourage a client to share their data?
Most of your clients interested in UBI products will already understand the connection between data and personalized products. But for those who do not, it is good to remind them that data makes it possible to create customized policies and offer exclusive discounts.
They will have the possibility to choose between the Pay How You Drive or Pay as You Drive product model, meaning you will have something to offer frequent and infrequent drivers.
Show them the different gamification options to collect even more discounts or even prizes by collecting badges or participating in challenges. For more information on that, you can always try out our demo app or tune in this Friday for our webinar on customer engagement, presented by our CEO Marijan Mumdziev.
The continuing issue with data sharing and privacy will be continued and only grow with technology developments. But we can still assure you one thing: the data collection process in the Amodo Platform is transparent and will always be created to your and your clients' needs.
For more information on data collection, fill out the form below: