When you think about climate change, you might not consider a daily commute to work or a drive around town as big contributing factors. And yet, transport is the fastest growing source of CO2 emissions from fossil fuel, which in turn is the largest contributor to climate change. This is the key insight behind the mission of Spanish carbon-neutral multinational Acciona. The group, which provides sustainable solutions for infrastructure and renewable energy projects across 65 countries, launched an electric scooter sharing service called Acciona Mobility in 2018.

Aiming to contribute to the decarbonization of the transport sector while helping relieve traffic congestion within cities, Acciona Mobility enables users to rent electric scooters powered 100% by energy from renewable sources. Users can find, reserve, and rent the scooters at the tap of their mobile screens via the Acciona Mobility application and pay on the basis of minutes spent riding. The app, which is available free to download online, is also the gateway through which new users can register for the service, which welcomes anyone with a valid driver’s license for motorbikes. After having their right to drive, identity, and card details validated, citizens can start enjoying the service, available 24 hours a day, every day of the year.

“We needed to deploy a reliable infrastructure for a new service before understanding exactly what its scale and demand would be. Our strategy was to adopt a serverless architecture that can grow with us to sustain our long-term vision. This kind of thinking led us directly to Google Cloud.”

—Jose Luis Rosell, CIO Services Division, Acciona

“Acciona Mobility is exciting because it stems from our vision to make people’s lives easier in a sustainable way,” says Jose Luis Rosell, CIO of Acciona’s Services Division. “40% of the pollution near cities comes from private transportation. We want to help solve that problem with zero-carbon, electric, multimodal transportation that’s also convenient for people to use.”

However, Jose Luis says that building the appropriate IT infrastructure to bring the new service to life required external support. “We needed to deploy a reliable infrastructure for a new service before understanding exactly what its scale and demand would be. Our strategy was to adopt a serverless architecture that can grow with us to sustain our long-term vision,” he explains. “This kind of thinking led us directly to Google Cloud.”

Developing the transportation platform of the future

Because Acciona was already a Google Cloud customer, Jose Luis and his team reached the decision to develop the new service on Google Cloud with ease, as he explains: “We had a very positive experience working closely with the Google Cloud team during Acciona’s first project on Google Cloud, and that collaborative mentality is very important for us. We feel Google Cloud is a trustworthy partner that is willing to take risks with us and is flexible enough to lead us through business uncertainty with the right technology,” he says. “So we were confident that its technology and people could help us bring the Acciona Mobility service from theory to reality.”

This time, Acciona partnered with cloud consultancy Altostratus as well, to consult on a selection of Google Cloud products that would help develop the application quickly by making use of managed services. Acciona’s strategy was to launch the new services first in Madrid, where the company is headquartered, and then spread the vision across more cities later, if the idea worked out well in practice. Due to the scale of the project and its data needs, BigQuery was chosen as the primary data warehouse to store all the information related to the service, such as the location of scooters and their availability status. With all its data readily available on BigQuery, Acciona is able to run specific queries that help it to gain insights such as which urban areas have the highest volume of scooters being rented. Knowing this, Acciona can reorganize availability to make sure there are always enough scooters in that specific location.

Integrating it with Pub/Sub and Dataflow, Acciona ensures that the data generated by scooters is ingested and processed in real time so that users searching for scooters nearby, using the Acciona Mobility application on their phones, can always have up-to-date information at hand. Using Google Maps Platform APIs such as the Directions API, Acciona’s mobile app translates the geographical coordinates of scooters into an easy-to-read address displayed beside a visual map. Using Cloud SQL, Acciona automates the storage capacity management of the database as the number of scooters and active users grow.

Meanwhile, Google Cloud Armor protects the service against cyber breaches and distributed denial of service attacks to keep it running uninterrupted. In addition, Google Cloud itself helps to reinforce the cyber security measures with secure-by-default managed services, such as data encryption. “The managed services mean more resilience and more uptime, because we don’t need to worry about maintenance or external threats,“ says Jose Luis of the solutions protecting all information generated by the new service, which as CIO is a topic he holds dearly. “I face cybersecurity issues more confidently as a Google Cloud partner,” he adds.

“Today, we have data coming in every 15 seconds from 10,000 electric scooters around Europe. BigQuery and Cloud SQL-managed services help us handle that data very carefully and with precision so that our users don’t experience any lags when searching for scooters or returning them.”

—Jose Luis Rosell, CIO Services Division, Acciona

Expanding an 100% sustainable transport solution throughout Spain

Within two months of the decision to deploy Acciona Mobility on Google Cloud, the service was ready for launch, filling the streets of Madrid with 500 electric scooters that run 100% on renewable energy. By 2020, the number of scooters has grown to 10,000 and the service has scaled to multiple cities in and outside of Spain, including Lisbon, Milan, and Rome. To date, more than 3.5 million intracity rides have used the Acciona Mobility app, reducing CO2 emissions by more than 1,000 tons.

“Today, we have data coming in every 15 seconds from 10,000 electric scooters around Europe. BigQuery and Cloud SQL-managed services help us handle that data very carefully and with precision so that our users don’t experience any lags when searching for scooters or returning them,” says Jose Luis of the fast-growing scale of the project.

“Google Cloud enables us to keep our services always available and to scale quickly to respond to its growing demand. Our ratings have been very positive as a result. More importantly, our vision of transportation as a cleaner, more sustainable commodity is really spreading and resonating with the public.”

—Jose Luis Rosell, CIO Services Division, Acciona

Set to continue expanding, Acciona is using Google Kubernetes Engine to make sure the Acciona Mobility application has the computing capacity it needs to continue scaling to reach new markets and serve more users. On that note, Google operations tools (formerly Stackdriver) are also being deployed to help monitor, troubleshoot, and improve the performance of the application as it scales.

“Google Cloud enables us to keep our services always available and to scale quickly to respond to its growing demand. Our ratings have been very positive as a result. More importantly, our vision of transportation as a cleaner, more sustainable commodity is really spreading and resonating with the public,” he concludes.

AirAsia’s vision is simple: allow everyone to fly. Founded in 2001, the airline and sister company AirAsia X have grown to service 150+ destinations in 25 markets, using 274 aircraft to operate 11,000+ weekly flights from 23 hubs across the region. While the airline is known as a provider of low-cost airfares to locations across Asia, this is only one part of its value proposition. AirAsia also aims to deliver innovative, personalized products and services that meet the needs of each of its passengers.

Technology is key to AirAsia’s success and, with strong support from Group Chief Executive Officer Tony Fernandes, in 2016 the airline began a five-year program to become a data-first business and a digital airline.

“We wanted to better ensure we were using data correctly to become more agile, efficient, and customer oriented,” says Lye Kong Wei, Chief of Data Science, Group Head at AirAsia.

AirAsia needed technologies and services that could capture, process, analyze, and report on data, while delivering value for money and meeting its speed and availability requirements. The airline also wanted to minimize infrastructure management and system administration demands on its technology team.

“We knew data was a big part of making decisions in the future. So we needed a platform that could scale to meet our growing appetite for it. Google Cloud—in particular BigQuery—was ideal for this task.”

—Lye Kong Wei, Chief of Data Science, Group Head, AirAsia

Google Cloud the best fit

AirAsia realized only a cloud service could meet its needs and began evaluating the market. The airline then conducted a proof of concept and found Google Cloud was the best fit for its business. It was already familiar with Google Cloud, having deployed G Suite collaboration and productivity applications to its workforce in all countries except China. According to Kong Wei, products such as Forms, Docs, Sheets, and Gmail delivered a considerable improvement in collaboration between various departments, as well as streamlining and automating a range of processes.

The business was particularly excited by the potential of the BigQuery analytics data warehouse to power its digital transformation. “We knew data was a big part of making decisions in the future,” says Kong Wei. “So we needed a platform that could scale to meet our growing appetite for it. Google Cloud—in particular BigQuery—was ideal for this task.”

“With BigQuery, we could process queries and requests much faster than previously and tackle more complex problems.”

—Lye Kong Wei, Chief of Data Science, Group Head, AirAsia

The AirAsia technology team was impressed by the ease and flexibility with which it could extract, transform, and load customer data from its systems, websites, and mobile applications into BigQuery for analysis. Data, reports, and dashboards were delivered and visualized through Google Data Studio.

BigQuery also scaled seamlessly to support data growth and, as a managed service, required minimal administration from the airline’s technology team. “In addition, with BigQuery, we could process queries and requests much faster than previously and tackle more complex problems,” says Kong Wei. “As a result, we could be more innovative about realizing opportunities,” he adds, citing the benefits of being able to view and understand historical measures of booking curves—a measure of how long it took customers to book before a flight. This improves the airline’s ability to manage revenues.

A broad ecosystem

BigQuery and Data Studio are just two components of a broad ecosystem—powered largely by Google Cloud services—deployed by AirAsia. Pub/Sub provides a scalable message queue that enables AirAsia developers to integrate systems hosted on Google Cloud or externally. Apache Airflow enables the business to create, schedule, and monitor workflows, while Cloud Composer manages the dependencies of PHP and related libraries. App Engine allows AirAsia personnel to develop and host web applications. “Thanks to App Engine, we’ve easily been able to create new applications, services, and APIs powered by the data we have been collecting,” says Kong Wei.

AirAsia is also running the middleware for its APIs in a managed Google Kubernetes Engine environment for increased scalability, resource optimization, and reliability, while Cloud Storage provides storage for data from a range of systems and sources. Dataflow enables the business to transform and process data in stream and batch modes from its website search page as customers look for flights.

“With a minimal number of people involved, we can very quickly transform an idea or thought process into a deliverable. Prior to Google Cloud, bringing those ideas to fruition would have been impossible.”

—Lye Kong Wei, Chief of Data Science, Group Head, AirAsia

Faster deployment and testing

The stability of Google Cloud service means AirAsia has a reliable base from which to launch new products and features. “If we have consistent reliability from our core systems—and Google Cloud incorporates monitoring tools such Cloud Monitoring that enable us to identify issues quickly—developers and product engineers can focus on turning ideas into reality,” says Kong Wei. “With a minimal number of people involved, we can very quickly transform an idea or thought process into a deliverable. Prior to Google Cloud, bringing those ideas to fruition would have been impossible.”

Robust security

AirAsia is also relying on Security Health Analytics, a product that integrates with Security Command Center, to identify misconfigurations and compliance violations in its Google Cloud resources and take action. Security Health Analytics ensures the airline’s budgets go to keeping customers’ travel costs low rather than recovering from security breaches.

The product enables AirAsia to check that resources are configured properly and are compliant with CIS benchmarks as its critical workloads run in Google Kubernetes Engine and App Engine.

“Being able to go to the new Security Health Analytics dashboard eliminates the guesswork of what we have running and if it is secure,” says Muhammad Faeez Bin Azmi, Information Security and Automation Solution Architect. “Now anyone on our team, even non-security professionals, can go to this dashboard and see a list of the misconfigured assets and compliance violations across all of our Google Cloud resources. We can also see the severity of misconfigurations, which helps us prioritize our response.”

“Security Health Analytics has really helped us reduce the amount of time we spend trying to figure out what’s wrong with our resources. It’s allowed us to use our time more effectively to identify and resolve more security issues than we could before.”

A new identity solution

AirAsia had also used a legacy on-premises directory for many years. However, as the company grew and expanded to new markets and regions, it had to manage multiple servers across a number of on-premises data centers and the public cloud, which proved costly and time-consuming.

Its Allstars—the airline’s name for its employees—needed to easily access a number of legacy on-premises apps in addition to a growing number of SaaS apps. As a business, it also needed a more seamless integration between its HR system of record and its identity solution for user provisioning and life cycle management. Solving these challenges with its existing on-premises directory was simply not feasible.

AirAsia brought up its identity concerns with the Google Cloud team, and after a number of conversations, decided to deploy Cloud Identity, Google’s cloud-based Identity and Access Management solution, to help address the identity challenges it was facing.

The airline chose Cloud Identity for a number of reasons—first, it was eager to move to the cloud as quickly as possible. Moving identity management to the cloud was a key enabler of this and the airline’s broader digital transformation. Managing identities from the cloud also enabled the airline to have a single identity and set of credentials for each employee, which they could use to access all the applications they need to be productive, both in the cloud and on-premises.

In addition, deploying Cloud Identity was a key step towards enabling the zero trust security model, which the airline felt was the best approach to strengthen its security posture and fight modern threats. Cloud Identity also integrated seamlessly with its existing technologies, which include not only Google Cloud products like G Suite and Chrome OS but also third-party tools like Citrix, Papercut, and others.

And finally, Cloud Identity offered significant cost and resource savings. With Cloud Identity in place, AirAsia’s IT department could spend less time worrying about managing multiple on-premises directory servers and and could instead focus on delivering value to Allstar employees.

Machine learning employed to increase ancillary revenue

In March 2018, AirAsia established the groundwork to use machine learning to optimize pricing for a range of services and began by using AI Platform to sort and predict demand for ancillary services such as baggage, seats, and meals. “By using AI Platform, we can sort based on data about history to predict the future,” says Kong Wei.

Dialogflow in wide use

With Google Cloud well established within the business, AirAsia is using Dialogflow, a voice and conversational interface development suite (and one of the core components of Contact Center AI) that enables businesses to create engaging AI powered voice- and text-based interfaces such as chatbots and voice apps—to streamline operations and reduce costs

“Tony Fernandes, our Group Chief Executive Officer, motivated us to create a range of metrics that would enable us to respond more quickly and efficiently to customers,” says Yuashini Vellasamy, Product Manager at AirAsia.

This resulted in the initial deployment of Dialogflow in AirAsia’s operational areas, from crew scheduling to internal business tasks.

With Dialogflow, AirAsia is able to provide pilots, crew, catering, and other teams with flight times, capacity and any other relevant information about their assignments. Another bot accepts medical certificates and updates from pilots and crew members unable to make rostered assignments and switches those assignments to other pilots and crews. “This improves our on-time performance and operational efficiency, as we are able to optimize the creation of crew schedules,” says Vellasamy.

AirAsia also uses Dialogflow to power a “safety bot” for airport ground staff. “We tried a lot of tools to encourage staff to advise us when they saw a safety issue—but employee usage was low,” says Vellasamy. “However, when we set up the safety bot, which asks users just four questions about an issue they have observed, we saw an increase in employee interaction, which helps ensure proper safety measures.

Beyond crew optimization and overall safety, AirAsia’s HR department in Asia uses a Dialogflow-powered bot to run a post-orientation engagement program for new employees. The bot follows up with employees about issues from parking to AirAsia’s onboarding buddy program, saving HR employees time from scheduling one-on-one meetings. Dialogflow also powered an employee satisfaction survey of 3,000 team members, resulting in a 30% increase in response rate compared to the previous year.

One of Dialogflow’s benefits is its language coverage, which the airline’s marketing team uses to target customers and prospects across a region with diverse languages and cultures. “For weekly campaigns and promotions, our sales and marketing teams simply update the campaign materials and the changes are reflected automatically in Dialogflow and consequently to users,” says Vellasamy. “This enables us to quickly scale and reach our customers globally.”

An upward trajectory

AirAsia is poised to reap further benefits from Google Cloud as its deployment matures. “On the data side, we’re more advanced, while on the application and programming side we have a long way to go,” says Kong Wei. “We’re on a trajectory upwards—we’re looking at a lot of new ideas and how to embrace and deploy them so we can further our data-first and digital airline agendas.”

It may be surprising to know that U.S. natural catastrophe economic losses totaled $119 billion in 2020, and 75% (or $89.4B) of those economic losses were caused by severe storms and cyclones. In the insurance industry, data is everything. Insurers use data to influence underwriting, rating, pricing, forms, marketing, and even claims handling. When fueled by good data, risk assessments become more accurate and produce better business results. To make this possible, the industry is increasingly turning to predictive analytics, which uses data, statistical algorithms, and machine learning (ML) techniques to predict future outcomes based on historical data. Insurance firms also integrate external data sources with their own existing data to generate more insight into claimants and damages. Google Cloud Public Datasets offers more than 100 high-demand public datasets through BigQuery that helps insurers in these sorts of data “mashups.” 

One particular dataset that insurers find very useful is Severe Storm Event Details from the U.S. National Oceanic and Atmospheric Administration (NOAA). As part of the Google Cloud Public Datasets program and NOAA’s Public Data Program, this severe storm data contains various types of storm reports by state, county, and event type—from 1950 to the present—with regular updates. Similar NOAA datasets within the Google Cloud Public Datasets program include the Significant Earthquake Database, Global Hurricane Tracks, and the Global Historical Tsunami Database.  

In this post, we’ll explore how to apply storm event data for insurance pricing purposes using a few common data science tools—Python Notebook and BigQuery—to drive better insights for insurers.

Predicting outcomes with severe storm datasets

For property insurers, common determinants of insurance pricing include home condition, assessor and neighborhood data, and cost-to-replace. But macro forces such as natural disasters—like regional hurricanes, flash floods, and thunderstorms—can also significantly contribute to the risk profile of the insured. Insurance companies can leverage severe weather data for dynamic pricing of premiums by analyzing the severity of those events in terms of past damage done to property and crops, for example. 

It’s important to set the premium correctly, however, considering the risks involved. Insurance companies now run sophisticated statistical models, taking into account various factors—many of which can change over time. After all, without accurate data, poor predictions can lead to business losses, particularly at scale.  

The Severe Storm Event Details database includes information about a storm event’s location, azimuth (an angle measurement used in celestial coordination), distance, impact, and severity, including the cost of damages to property and crops. It documents:

• The occurrence of storms and other significant weather events of sufficient intensity to cause loss of life, injuries, significant property damage, and/or disruption to commerce.
• Rare, unusual weather events that generate media attention, such as snow flurries in South Florida or the San Diego coastal area.
• Other significant weather events, such as record maximum or minimum temperatures or precipitation that occur in connection with another event.

Data about a specific event is added to the dataset within 120 days to allow time for damage assessments and other analysis.

Driving business insights with BigQuery and notebooks

Google Cloud’s BigQuery provides easy access to this data in multiple ways. For example, you can query directly within BigQuery and perform analysis using SQL. 

Another popular option in the data science and analyst community is to access BigQuery from within the Notebook environment to intersperse Python code and SQL text, and then perform ad hoc experimentation. This uses the powerful BigQuery compute to query and process huge amounts of data without having to perform the complex transformations within the memory in Pandas, for example.

In this Python notebook, we have shown how the severe storm data can be used to generate risk profiles of various zip codes based on the severity of those events as measured by the damage incurred. The severe storm dataset is queried to retrieve a smaller dataset into the notebook, which is then explored and visualized using Python. Here’s a look at the risk profiles of the zip codes:

Another Google Cloud resource for insurers is BigQuery ML, which allows them to create and execute machine learning models on their data using standard SQL queries. In this notebook, with a K-Means Clustering algorithm, we have used BigQuery ML to generate different clusters of zip codes in the top five states impacted by severe storms. These clusters show different levels of impact by the storms, indicating different risk groups. 

The example notebook is a reference guide to enable analysts to easily incorporate and leverage public datasets to augment their analysis and streamline the journey to business insights. Instead of having to figure out how to access and use this data yourself, the public datasets, coupled with BigQuery and other solutions, provide a well-lit path to insights, leaving you more time to focus on your own business solutions.

Making an impact with big data

Google Cloud’s Public Datasets is just one resource within the broader Google Cloud ecosystem that provides data science teams within the financial services with flexible tools to gather deeper insights for growth. The severe storm dataset is a part of our environmental, social, and governance (ESG) efforts to organize information about our planet and make it actionable through technology, helping people make a positive impact together. 

To learn more about this public dataset collaboration between Google Cloud and NOAA, attend the Dynamic Pricing in Insurance: Leveraging Datasets To Predict Risk and Price session at the Google Cloud Financial Services Summit on May 27. You can also check out our recent blog and explore more about BigQuery and BigQuery ML.