Things that users post on Facebook are essentially publicly available windows into those people's personalities, and 'Firstcarquote' is a new insurance discount program that takes advantage of that information. Developed by 'Admiral,' a UK car insurance company, Firstcarquote analyzes the content of new drivers' Facebook profiles, giving them discounts if the system recognizes certain responsible or safe personality traits.
As any new driver looking to purchase their first insurance plan knows, new drivers often get comparatively ludicrous insurance premiums. These high premiums are the result of a lack of driving history and data showing that young drivers are far more likely to get into accidents.
Rather than relying on this blind data, though, Firstcarquote recognizes that other factors, such as personality, have an effect on driver safety. As such, Admiral has developed an algorithm that assesses a client's recent Facebook posts and provides them with discounts for qualities that are commonly displayed by safe drivers.
Why This Trend Is Growing
- Personality-based Discounts
- Admiral's Firstcarquote uses Facebook posts to offer discounts based on safe and responsible personality traits for new drivers.
- Social Media-based Risk Assessment
- The use of social media to assess risks has potential to disrupt traditional risk evaluation processes in industries beyond car insurance.
- Individualized Risk Evaluation
- By using individual data, such as personality traits, to assess risk, insurance providers have an opportunity to provide more personalized and fair risk evaluations.
Industries Being Reshaped
- Car Insurance
- Admiral's Firstcarquote indicates a shift in the car insurance industry towards more personalized risk evaluation using data beyond driving history.
- Data Analytics
- The use of an algorithm to assess personality traits for risk assessment highlights a potential disruption in data analytics for risk evaluation across all industries.
- Social Media
- The use of social media to gather data for risk evaluation reveals a potential disruption in the privacy and security considerations of social media use in insurance and other industries.
