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Driver Behavior Models and Insurance Lead Generation

Cameron JahnCameron Jahn

Data is changing the insurance industry for the better. That’s thanks to driver behavior models and how they improve insurance lead generation.

With the rise of telematics, the technology that enables real-time transmission of data, both drivers and insurers are beginning to better understand our roads.

And the upshot for the insurance industry is enormous. If insurers can accurately establish driver behavior models, then they can offer truly safe drivers extremely attractive prices while minimizing risk. In turn, drivers get an enhanced customer experience that builds brand loyalty with insurers while rewarding their safer behaviors.

So what does this transition from driver behavior models to insurance lead generation look like?

We’re glad you asked.

Why Driver Behavior Models Are Important

To understand insurance, we need to understand drivers. And to understand drivers, we need lots and lots of data.

Fortunately, the Zendrive platform has collected over 100 billion miles of driver data, more than all other platforms combined. And as we’ve explained before, that empowers Zendrive’s artificial intelligence to discover and identify trends and patterns with a very high level of accuracy.

And when you understand these trends and patterns, you can begin to create highly reliable driver behavior models.

Instead of using proxy variables like age, home-ownership, and education to evaluate risk, Zendrive is able to analyze the real driving habits of real drivers.

Zendrive recently conducted the largest distracted driving study in history. And using our smartphone-based telematics platform, which measures everything from acceleration and velocity to hard braking to cell phone usage, we identified the six (6) most relevant driver personas from a risk standpoint.

Those six driver personas are:

High Risk

Phone Addicts: These drivers tend to spend 3.2X more time using their phone while driving, compared to average drivers.

Frustrated Lead-Footers: These drivers have 5.8X more acceleration and hard braking events per 100 miles, compared to average drivers.

Speed Demons: These drivers spend 5.9X more time speeding, compared to average drivers.

Low Risk

Neighborhood Navigators: These drivers spend half as many miles driving on the highway, compared to average drivers.

Expert Commuters: These drivers spend 1.4X as many miles driving on familiar highways, compared to average drivers.

Weekend Cruisers: These drivers spend 1.9X as many miles driving during the weekends, compared to average drivers.

Armed with this information, the insurance industry can offer prices to drivers that are much more fair to both parties. And that makes everyone happier.

The better risk can be assessed, the more precise the driver behavior models can be. And that means much more targeted insurance lead generation for insurers.

How Driver Behavior Models Enable Insurance Lead Generation

Knowledge is power. And equipped with these driver behavior models, insurers can begin presenting hyper-personalized advertisements to their customers.

With this data, and with opt-in from customers, insurers can scan the database of drivers and select only those they would like to target – most likely the safest and least-risky drivers.

Not only does this shield insurers from unattractive risks, but it allows them to create a personalized customer experience that builds loyalty and wins business.

77% of insurance customers say that customized promotions are effective tools to encourage them to buy, and 68% of insurance companies say targeted promotions are a key driver of improved online sales.

Not only that, but consumers will pay more for personalized services.

Why? In a world where insurance customers increasingly feel like anonymous numbers, imagine being able to offer them: lower pricing that dynamically considers their behaviors, recommendations and incentives to prevent further risks, and personalized messaging that speaks directly to their needs and habits.

Data and driver behavior models that enable insurers to target and win only their ideal customers? That’s powerful insurance lead generation, made possible by Zendrive.

Conclusion

The future of insurance is almost here. And Zendrive’s 100 billion miles of driver data and highly-accurate driver behavior models are creating exciting new opportunities for insurance companies.

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Cameron leads Product Marketing for Zendrive. He's a storyteller at heart with an analytical bent.

Cameron leads Product Marketing for Zendrive. He's a storyteller at heart with an analytical bent.