As part of an ongoing effort to offer lower rates and personalised service, Aviva wanted to design an innovative pricing model that would lower insurance premiums for deserving customers. Aviva wanted to collect telematics data from moving vehicles in order to reward safe drivers with tailored insurance plans make the offering more personal.
Aviva developed Aviva Drive, a free mobile phone app. Aviva Drive works with phones’ built-in GPS technology and sensors to collect and analyses the telematics data. Aviva achieved its goal to deliver personalised quotes based on telematics data. Aviva can now strengthen its competitive advantage by offering quotes based on the driver’s own capabilities rather than statistics.
One use of data and analytics is to block fraudulent transactions as quickly as possible to minimize cost, by using a machine learning model with data including card membership information, spending details, and merchant information to detect suspicious events.
American Express are able to make a decision in milliseconds by comparing that event to a large dataset. This has enabled them to detect more fraudulent transactions and save around $2 billion a year in potential fraud incidents