How Behavioural Monitoring Can Positively Impact The Future of Insurance

David James and Dr Lisa Dorn - July 30th, 2019

How do we envision the future of insurance, mobility and risk in 2019?

The short answer is that it’s difficult to know because changes to technology are so fast-moving that its having an effect on everyone from insurers and local authorities to mobility providers and road users, including drivers, passengers and cyclists.

One key area which The Floow has chosen to focus on is Behavioural Monitoring which allows for better understanding of driver behaviour so;

  • Risk can be priced more accurately
  • The future of our cities and road networks can be better planned with safety in mind; and,
  • Safer driving can be encouraged through driver education and the inclusion of social sciences into telematics propositions

Our mission – to make mobility safer and smarter for everyone – has steered our development of understanding the benefits that incorporating social science techniques into our telematics propositions could have on improving risk profiles and road safety.

As a result, our Chief Education Officer and Associate Professor of Driver Behaviour at Cranfield University, Dr Lisa Dorn, began researching and developing what would later become FloowCoach, our driver coaching programme which launched to the market back in 2015.

Encouraging Safety and Engagement

FloowCoach is designed to take the scores generated by The Floow’s world-class scoring algorithms and provide tailored feedback, education and coaching to the highest risk drivers, who represent an increased risk of making a claim during the lifetime of the policy, with the end goal being to encourage safer driving behaviours.

FloowCoach is provided through a number of telephone-based coaching sessions delivered by our highly-trained behavioural coaches who use behavioural change techniques to encourage positive changes in driver behaviour.

The unique insights which we gain from including social sciences within our telematics insurance propositions provides insurers with a true understanding of the risk on their book. It also provides them with the opportunity to engage customers about their behaviour behind the wheel, in order to improve their scores and their risk profile.

We believe that this will encourage customer loyalty by supporting customers towards being safer drivers. Customers who make a positive change may then be given the opportunity to potentially gain a cheaper price for their insurance policy, or gain rewards and discounts.

Continuing to Innovate

But despite all this work, insurance is widely viewed as a grudge purchase and loyalty to a provider can be low in markets such as the UK where purchasing decisions are driven by cost rather than service, brand heritage or expertise.

While behavioural monitoring techniques like those mentioned above help insurers to deal with this issue, there is still a long way to go to create insurance propositions which truly add value to the lives of policyholders.

But, where does The Floow sit in all this and how can we help insurers to deliver great customer experiences and remain competitive in a fast-changing market? For our behaviour monitoring solutions, we believe the answer to this lies in the power of digital…

Creating Seamless Customer Experiences with Behavioural Monitoring Techniques

Our aim is to remove all friction from the customer experience to make safe mobility easier for the driver to accomplish. One way to do this focuses on making use of automation tools to deliver driver coaching to app users in a timely and actionable format.

A great way of doing this would be through the use of the chatbot which many providers are already making use of across the insurance telematics market. Chatbots are seen as a highly engaging tool and sectors including banking and entertainment are using them to cultivate personalised engagement with their products and simplify the experience for the end-user.

How are we doing this?

Although these capabilities are not typically part of a standard insurance proposition, they can help to encourage engagement with telematics apps and driving behaviour, which is why The Floow is focusing our attention on understanding what it is that drivers, the end-users of these apps, want from their insurance provider.

As a result, user research has become a vital part of our product development cycle and after our recent move to agile we can input findings straight into future iterations of current products if we discover a clear need for a particular capability or require a change to a piece of functionality to make it more user friendly.

The findings gained from user research also prove valuable for our clients who benefit from these insights into the market, helping them successfully navigate the future of mobility and launch successful telematics insurance propositions that are of real value to their policyholders.

In Summary

The changes in technology can be difficult to understand or prepare for but they provide insurers with an opportunity to deliver an insurance experience that is rewarding and beneficial for the policyholder. Behavioural monitoring and change techniques provide insurance companies with the opportunity to offer their policyholders the tools to make positive improvements to their driving behaviours to become safer drivers on the roads.

We remain focused on becoming a true partner that our clients trust to deliver great solutions, providing them with the knowledge and capabilities to remain competitive and fulfill the ever-changing requirements of their customers, whilst working towards fulfilling our mission – to make mobility safer and smarter for everyone.

To find out more about our work surrounding behavioural monitoring, you read the full article in Driven magazine on Issuu.

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