How we’re using data to save our customers money
Written by Benedict Harrison
At Zego, we design insurance policies with our customers in mind. We focus on the varied and exact needs of workers, offering insurance solutions that meet the changing demands of the modern workforce. We believe that everyone should be able to work freely and safely, in the knowledge that they’re protected should something ever go wrong.
By breaking down the rigid structures of traditional annual insurance policies, we have been able to offer our customers the same flexibility that they get from their work. Our pay-as-you-go cover offers people protection at a cost that is in proportion to the number of hours they’re working. Customers can purchase cover for just a single hour or for a full year. That means they can get a suitable policy, however many hours they choose to work.
Our pay-as-you-go cover has proven successful in lowering the barrier to entry for food delivery and courier work. However, we noticed a pattern emerging. Customers who begin delivery work using our pay-as-you-go cover often increase the number of hours they work over time. What starts as a job on the side to earn some extra money sometimes turns into full-time work, such is the flexible nature of the gig economy.
For some customers, pay-as-you-go cover ends up costing more than it should. This is because it’s designed for those working up to 25 hours per week. Unaware that their working hours are better suited to Zego’s 30-day or annual insurance policies, delivery workers can end up overspending on their insurance cover.
We knew that some of our customers weren’t using the insurance product that was right for them. We also knew that something had to change.
To remedy the situation, we enlisted the help of our Business Intelligence team. They wrote a policy-usage algorithm to identify customers who could save money with a different product. This algorithm pinpointed car and scooter delivery workers whose premium for a 30-day policy was lower than the amount that they had spent on pay-as-you-go cover during the previous 30 days.
If we assumed that there would be no change in the number of hours that these customers worked each week, we knew that they could save money by switching over to our 30-day cover.
With the insights gained from our newly-built dashboard, we proactively contacted every customer who could save money by switching to an insurance policy designed for their working hours.
We sent these customers an email explaining how they could save money on the cost of their insurance. We included details on how much they had spent on their insurance in the last 30 days using our pay-as-you-go cover, how much we could quote them for a 30-day policy based on the details we had for them, and the saving (calculated as the difference between the two).
Customers had the option to call us straight away or to click a button to register their interest, in which case we’d give them a call to discuss switching to a different policy.
This experience shows much more than just how we can save our customers money. It demonstrates how Zego’s cover caters for the varying needs of all workers. Most importantly, we are able to pass the benefits gained through our data insights back to our customers, by identifying those who could save money using a different product.
We want all our customers to know that, with Zego, they will always have access to insurance policies that are tailored to their needs. If they change the way they work, then their policy can change too. We don’t charge any admin fees for switching between our pay-as-you-go and fixed-term policies either, so our customers can get fully flexible insurance cover.
Insurance is the 3rd most distrusted industry in the world (PR Daily August 2017). At Zego, we know this has to change. By providing our customers with policies that suit their work and recommending products accordingly, we hope to establish a level of trust that is unprecedented in the insurance industry.