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Analytics: How to Win with Intelligence
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“The journey of a thousand miles begins with one step.”
– Lao Tzu
The Progressive Group of Insurance Cos. is at the cutting edge of advanced analytics. Through the use of transponder devices that people install on their vehicles, the company is able to track customers’ mileage, the times of day they tend to drive, and their braking habits. That data enables Progressive to determine more accurate pricing, including which customers should and shouldn’t receive insurance premium discounts (and the size of those discounts).
The system, called Snapshot, also provides tips to customers who want to improve their driving skills, and a user-friendly interface enables them to share their experiences on social networks. Moreover, by analyzing the cumulative Snapshot data over the years (a total of more than 12 billion miles of driving), Progressive has been able to derive a number of key insights. It has found, for example,...
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