Optimising and transforming Car Insurance landscape with Generative AI.
This proposition below aimed to improve the overall customer experience by implementing generative AI within By Miles business model.
OVERVIEW
Problem
Traditional insurance methods at By Miles, such as static premium models, limited customer engagement, and reactive support systems, fail to meet the dynamic needs of modern car owners. These shortcomings result in inefficient pricing, reduced customer retention, and missed opportunities for proactive user support.
Outcome
The implementation of AI-powered solutions, including predictive driving analytics and personalized usage-based pricing models, offers improved customer satisfaction, operational efficiency, and cost transparency. These tools redefine the insurance experience by leveraging real-time data and automation.
CLIENT
By Miles
By Miles is an innovative UK-based car insurance provider, specializing in pay-per-mile insurance. Known for its user-centric approach, By Miles aims to revolutionise traditional insurance practices through transparency, flexibility, and technology-driven solutions.
INFO
Team
1 x Lead Product Designer
Role
AI Design Consultant - Research & Insight - User Experience Design - User Interface Design
Dates
12 Weeks
CLIENT BRIEF
Understanding the
Problem Space
Customers face rigid pricing models, insufficiently tailored plans, and limited tools for understanding their insurance costs.
✅ What is working?
Strong reputation for innovation, customer trust in pay-per-mile models, and an intuitive mobile app for tracking mileage and costs.
❌ What is not working?
Limited personalisation, lack of proactive support, and reliance on static risk assessment models.
⚡️ What could be enhanced
AI-driven pricing algorithms, real-time insights into driving behavior, and automated customer assistance.
Enhance transparency and personalisation in car insurance?
Leverage AI to provide real-time driving insights and recommendations?
Ensure scalable and eco-friendly practices in the insurance industry?
OPPORTUNITY- HOW MIGHT WE
USER PERSONAS
Emily Carter (Manchester, UK):
A tech-savvy freelance graphic designer seeking transparent and cost-effective car insurance solutions.
James Hamilton (Leeds, UK):
A sustainability-focused family man who values eco-friendly, tailored insurance options.
Competitive Analysis: Learning from Industry Leaders
Positive Insights
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Lemonade’s AI-powered claims process streamlines and simplifies user experiences. Through its app, users can file claims in seconds, with instant AI assessments often providing payouts within minutes, showcasing how automation enhances user satisfaction.
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Metromile, a direct competitor to By Miles, excels in its transparent pricing and app-based mileage tracking. Its use of real-time driving analytics and cost-saving tips highlights the success of tailored insurance models.
Negative Insights
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Traditional insurers’ inflexibility in pricing models creates customer dissatisfaction. For instance, companies like State Farm and Allstate often rely on static models that fail to adapt to individual driving behaviours, alienating users seeking fairness and customisation.
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Over-reliance on intrusive data collection leads to trust issues and privacy concerns. For example, Tesla’s insurance program, while innovative, has faced scrutiny for its extensive data collection practices, including detailed vehicle telemetry that some users find invasive.
Benefits and Challenges of
Implementing AI
🌟 Benefits
Dynamic pricing models based on real-time data increase fairness and transparency.
Proactive driving insights enhance user safety and engagement.
24/7 AI-driven customer support improves accessibility and user experience.
👊 Challenges
Addressing privacy concerns and ensuring GDPR compliance.
Balancing algorithmic accuracy with inclusivity and fairness.
Managing high implementation and operational costs.
Identifying Risks and Mitigation Strategies
👩💻 User
Privacy concerns mitigated by robust encryption, anonymized data, and opt-in policies.
Over-reliance on AI addressed through hybrid models incorporating human oversight.
🗄 Business
Algorithm biases countered by diverse data sets and continuous monitoring.
High initial investment managed through phased rollout and stakeholder partnerships.
Ideation
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Integrate AI-powered tools to analyse driving patterns and predict risk profiles. Prototypes demonstrate a dashboard highlighting key driving metrics like speed consistency and braking habits.
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Gamification elements such as the "Points By Miles" rewards program to encourage accurate mileage submissions, as highlighted in prototypes showing users earning points and unlocking rewards.
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Real-time driving feedback and eco-impact tracking, as seen in the prototype with gamified driver performance scores and eco-badges.
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Seamlessly integrate Google Maps to sync journeys and automate mileage tracking, reducing user effort and enhancing accuracy, as demonstrated in prototypes featuring login and synchronisation interfaces.
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Partnerships with EV manufacturers to incentivise green driving habits, as exemplified by prototype integrations showcasing discounts for EV-friendly policies.
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Live webinars to educate users about features, best practices, and app functionalities, minimising errors and improving engagement, as shown in the webinar signup prototype.
SOLUTION 1
Gamification:
The "Points By Miles" rewards program incentivises accurate mileage reporting by offering users points and benefits for each logged journey, fostering engagement and satisfaction.
SOLUTION 2
Google Maps Integration:
Seamlessly sync users' journeys and mileage data through Google Maps integration, ensuring accurate tracking and reducing the manual burden on customers.
SOLUTION 3
Live Webinars:
Build a community of informed users by offering live webinars that educate customers on app functionalities, mileage reporting, and best practices, ultimately improving overall experience and engagement.
Guardrail Design
Output Validation Framework
Flags anomalies or inaccuracies in AI predictions.
Ensures recommendations are contextually appropriate and unbiased.
Human-in-the-Loop
Manual review for high-impact decisions.
Continuous user feedback integration to refine AI models.
Impact of features on By Miles’s user and operations (hyp)
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Increased Customer Retention (20%)
Improved customer satisfaction through personalized pricing models and proactive driving insights will boost retention rates.
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Enhanced User Engagement (35%)
Gamification and live webinars are projected to increase active participation in the app, driving customer loyalty.
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Reduction in Claim Processing Time (40%)
AI-powered analytics and streamlined processes will reduce the time needed to file and settle claims.
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Increase in New Policy Sign-Ups (25%)
Innovations like Google Maps integration and eco-friendly incentives will attract environmentally-conscious drivers.
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Cost Savings for Customers (15%)
Real-time driving insights and dynamic premium adjustments will lead to tangible savings for policyholders.
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Operational Efficiency Gains (30%)
Automation and AI-driven processes will optimise internal workflows, reducing administrative overhead.
Retrospective
Final Thoughts and Takeaways:
By Miles’ integration of AI addresses critical inefficiencies in the insurance sector, blending technological innovation with user-centric design. The combination of predictive driving analytics, personalised pricing models, and gamification demonstrates how technology can transform traditional insurance practices into a modern, user-friendly experience. By leveraging real-time data and intuitive features like Google Maps integration and live webinars, By Miles ensures customers remain informed and engaged at every step. Moreover, its emphasis on privacy safeguards and eco-conscious initiatives sets a precedent for innovation that aligns with both business goals and societal needs. This project not only redefines the insurance landscape but also serves as a scalable model for delivering impactful, user-centric solutions across industries.