You may build castles in the air…if Big Data is the foundation!! App 1

Big data can enable some very fundamental business model shifts thereby unlocking big value. I am cataloging here, in a series of posts, what might appear to be abjectly crazy but possible business applications…

Insurance premiums will be based not on what one’s age or accident history is but on how we drive. So whether one is a racing freak or drive wonk or steady horse will matter now. Big data will crunch data collected from your car’s CPU on gear shifts, accelerator use, frequency and smoothness of stops, swerves, etc, compute the premium and take money from your wallet! Big data will additionally determine that you had a shot more than permissible alcohol limits (it will know that from your credit card swipe or from the mobile GPS locked for about 3 hours in a pub) and further will not let the car start.  I am reasonably certain a lot of us are going to drive very safely, pay a lot less premium and not even think of puffing up claims. The insurance companies that crunched such big data will not acquire poor drivers as customers and help thereby reduce costs, reduce premium rates and become more competitive.

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