Use of Big Data in the Insurance Industry

August 2, 2015

10:00 am

Big data is, more and more, a resource that no area of knowledge and business is leaving unattended. The subject has been previously covered here on Tech.co, including the application of big data in call centers, but this article will focus on yet another somewhat surprising, albeit extremely innovative and useful, application of this resource.

As it turns out, there is a service using big data to provide better analytics to insurance companies. Driveway is a smartphone-deployed telematics platform designed to reward safe driving. Its iOS and Android apps, paired with powerful cloud analytics, automatically and objectively scores driver behavior.

Driveway is good for the insurance industry, because the platform yields increased profits by attracting safer drivers who are segmented and priced more efficiently based on individually measured risk profiles. For consumers, the platform offers transparent, personalized pricing and actionable suggestions, helping over 80% of them to earn rewards for being safer drivers.

This platform goes straight to the desires that insurance companies have: to grow market share, attract new policyholders, retain the best drivers and drive down loss ratios, of course. Driveway smartphone telematics can help with each of these objectives.

Similarly, Driveway goes along the intentions of insured drivers: get affordable rates, an insurance partner they can trust and help with avoiding accidents. It used to be hard to obtain all these three goals, but not anymore with the use of this platform.

Driveway is being considered as a very promising product as, after a previously completed $1.3 million investment round back in August 2013, they now closed a $10 million funding round led by Ervington Investments, representing prominent Russian businessman Roman Abramovich.

The funds will be used to further strengthen Driveway’s position as the best in class telematics solution, create new markets for telematics solutions and grow the company’s team by attracting the smartest minds in the industry, meaning that we will surely hear more about this platform in the future.

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25 y/o, born and living in Portugal. Majored in Biology, but tech and computers were always a passion. Wrote for sites like Windows.Appstorm and MakeTechEasier.

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