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The amount of data in today’s disruptive age has burst out to unheeded levels and is powering the new state of the economy. Data is the key driver behind much of the transformations of every industry and society. For insurance companies, data is a significant asset and can lead to in-depth insights, assisting providers to become more effective and deliver better customer experience.

Insurance companies are in the very risk business, as their customers pay them for financial protection against all types of accidents and tragedies such as car damage, illness, and death. That’s not mean insurance companies lacked sufficient data with which to generate refined risk prediction models, they simply required the tools to store and evaluate it. But, thanks to big data analytics, insurers now can digitize and mine the information they’ve collected for decades to reap predictive insights. They can also integrate new data streams, from various sources to further hone their risk models.

So, how do insurance companies leveraging big data to personalize their policies and enhancing the customer experience?

Allianz Travel Insurance

Seated in Richmond, VA, Allianz Travel Insurance is leveraging big data to personalize its user experience. The travel insurance company developed an algorithm that personalizes those add-on policies, providing within a matter of second. Most of the airlines offer policies from Allianz and its affiliates while booking flights by travelers.

Allianz cover losses resulting from unexpected situations like pregnancy complications. It means if someone wants to cancel their trip because of covered pregnancy complication, the travel insurance may refund for non-refundable trip costs.

Lemonade

Lemonade, an American property and casualty insurance company based in New York City providing renters and home insurance policies for homes, apartments, co-ops, and condos. The insurance company gleans inhuman quantities of data on its users that means it can tag it plans with ultra-personalized prices.

Lemonade has its own AI-assisted chatbot, Maya, that helps in collecting data in a way. The company’s bot garners data on thousands of wannabe customers’ queries and requirements.

Vitality

London, UK-based Vitality is an insurance company specializing in private medical insurance selling to the UK market. The company insures its clients based on their vitality age, a measure of illness and death risk that is based on an amalgamation of biometric markers and lifestyle choices.

When a client has a higher vitality age than their real age and requires insurance, the company creates personalized health plans, rewarding participants with gift cards and prizes. Vitality accumulates big data on consumers through the Vitality Age calculator and wearables and affiliate organizations like gyms and grocery stores.

Liberty Mutual

Headquartered in Boston, Liberty Mutual Group is a diversified global insurer and the third-largest property and casualty insurer in the United States. By building a data lake, Liberty Mutual Insurance Group Enterprise Analytics department has developed a platform to deploy various big data analytics projects.

Esurance

Esurance is an insurance service provider selling auto, home, motorcycle, and renters insurance direct to consumers online and by phone. By using big data, the company’s Coverage Rules Engine, a personalization platform that moves through the company’s over 8 billion coverage configurations and plucks, has improved and it is the best one for its customers. As relying on almost two decades of Esurance data on consumer behaviours and pricing, Coverage Rules Engine also amasses customer data with every customer interaction.

Prudential

As an American Fortune Global 500 and Fortune 500 company, Prudential Financial has leveraged big data to redesign its customer experience. Its subsidiaries offer insurance, investment management, and other financial products and services to both retail and institutional customers throughout the US and across more than 40 countries.

Previously, each Prudential department had its own customer service protocol. But now, big data from call centers and hundreds of Prudential websites assist the company to form a more unified and personalized customer service experience.

Blue Cross Blue Shield Association

A collective of more than 36 health insurance organizations, Blue Cross Blue Shield Association offers health insurance to over 106 million people across the United States. Its BCBS Axis converts internal healthcare data into a patient-facing research tool.