ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics
Kestrel Insurance analyses telematics data from customers' vehicles, including braking, speed and time of day, to set individual premiums rather than using age and postcode bands. Which business use of big data does this BEST represent?
The best fit is segmenting and personalising pricing from behavioural data. Telematics records how each customer actually drives, allowing Kestrel to price risk individually rather than by broad age or postcode bands. The other options relate to audit, logistics or brand monitoring, which the case does not describe.
- AUsing data to reduce internal audit costs
- BSegmenting and personalising pricing based on behavioural dataCorrect
- CImproving supply chain visibility with RFID tags
- DMonitoring social media to protect brand reputation
Explanation
Telematics gives behavioural data on each customer, allowing risk-based, personalised pricing instead of broad demographic bands. The other options describe different uses of data (audit, logistics, reputation) not present in the case.
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