Barely recovering from the financial crisis and facing disruption from new technology, the insurance industry has to leverage on information outside of their organization to compete in today’s economy.
With the global economy still struggling to recover from the financial crisis, insurers have been fighting to maintain policy numbers amidst
What is mobility data?
Mobility data refers to the trajectories of people and objects. In the insurance industry, the movement patterns of people in a city are of particular interest. This is commonly referred to as
Redefining the insurance industry with mobility data
Here are three examples of how insurers can use mobility data to increase conversions and create new products. In each example, anonymized mobility data around Miami, Florida, between 1 October 2016 and 31 October 2016 was used. The data is available from DataStreamX.
1. Improve targeted advertising
Targeted advertising involves placing ads based on factors such as demographics, buying history and consumer behavior. This form of advertising allows advertisers to connect with audiences who are able to relate to the benefits that the product offers, increasing conversion rates in the process at the time it is needed. For targeted advertising to be effective, a strong understanding of demographics and consumer behavior is necessary.
In this example, we examine how MetLife can use mobility data to execute a real-time advertising campaign based on the location and intent of car buyers who are visiting automotive shops along NW 36th Street, Miami, Florida. The density heat map below shows the distribution of footfall traffic around two automotive shops in this area.
The red areas represent footfall traffic around Bill Seidle Suzuki, a car dealer specializing in new cars. The green areas represent footfall traffic around Chicago Motors, a car dealer specializing in used cars.
Based on this information, a real-time targeted advertising campaign could be carried out in this area to encourage new and used car buyers to purchase MetLife auto insurance. Using mobility data, MetLife could customize the advertising message to address the needs of new or used car buyers in the area so as to increase relevancy and conversions. By leveraging on mobility data to identify potential target audiences, insurers such as MetLife can increase conversion rates and improve the return on investment of their advertising campaigns.
2. Maximize revenue by upselling
Upselling is a sales technique where insurers offer customers the opportunity to purchase additional products and services. Such can include extra coverage on top of basic policies or
In this example, we examine how
The answer to this can be easily found by looking at mobility data. The figure below shows the proportion of visitors who rent cars when they arrive at Miami International Airport.
We see that a considerable number of travelers, almost 13 percent, rent a car once they arrive at Miami International Airport.
Based on this information,
3. Create new products by understanding customers
Building the right customer relationships is essential for any insurer. Not only does it increase trust and loyalty, which results in repeat business, but also leads to customers recommending your product to their family and friends. Understanding who your customers are and what they want would help you customize your products and services to meet their needs.
In this example, we examine how Liberty Insurance can use mobility data to create new product offerings. The figure below shows the distribution of visitors to Hartsfield–Jackson Atlanta International Airport who have landed there at least two times a month.
We see that the majority of frequent flyers to Atlanta are from New York (5 percent, green), followed by Washington DC (4.5 percent, green) and Miami (4 percent, blue). The other cities contribute to less than 3 percent of the total frequent flyers population.
Based on this information, Liberty Insurance could focus on frequent flyers who frequently visit Atlanta from Miami, New
Maintain your competitive advantage with mobility data
Insurance is a business built around risk and having a wealth of information is critical to mitigating such risk. With information such as mobility data, advanced
How do I get mobility data?
Obtaining mobility data for use in decision-making may be a difficult task for the uninitiated. Variables such as the time of day, seasonality and local trends make mobility data nearly impossible to measure accurately by manual counting or sampling. These factors also affect the reliability of conclusions based on footfall data alone. As a result, mobility data is often used in conjunction with other types of data such as demographic data, allowing users to formulate and test their hypotheses.
Accurate and reliable mobility and demographic data can be obtained from mobile app companies who provide anonymous location and demographic information of their users at a small fee. If it is your first time purchasing data, consider using online marketplaces such as DataStreamX to help you get in touch with suppliers of mobility data easily.