Driveway Software, Pinnacle to Offer Usage-Based Insurance Services to Insurers

February 11, 2015

Driveway Software and Pinnacle Actuarial Resources have teamed up to offer the auto insurance industry a coordinated usage-based insurance (UBI) approach that includes driver behavior scoring. Auto insurers can now leverage Driveway’s technology backed by Pinnacle’s rating, actuarial and regulatory guidance. The services are offered a la carte so insurers can choose technology, consulting, scoring individually or the coordinated package.

“Insurers know they need to break into usage-based insurance but some are unsure about the best way to approach filings, rating and product management,” said Igor Katsman, CTO of Driveway Software. “Now, with our technology and Pinnacle’s guidance, insurers can control their exposures and launch a UBI program that will deliver a more accurate price to the consumer with a better loss result for the carrier.”

Driveway Software’s smartphone app + cloud-based platform eliminates the costs and potential inefficiencies of onboard diagnostic device (OBD)-based programs. The Driveway product continuously tracks driver behavior (such as time of day, garaging location, braking, cornering, speeding and mileage) using a smartphone app.

Data is transmitted from the app to a secure cloud where a proprietary analytical platform processes the data of each individual risk component to derive a scored result for each risk element, as well as an overall safety score for each trip captured.

The Driveway app features automatic trip detection without any user or hardware dependency, or adverse impact on smartphone battery life and performance. More than 200,000 drivers have already downloaded and used the app, giving Driveway and Pinnacle the opportunity to collect and analyze more than 500 million miles of driving data.

“Applying Pinnacle’s analytics capabilities to half a billion miles of driving data provides insurers with a credible basis to incorporate driver behavior scores into their rating plans. The scoring is easily customizable, allowing companies to focus only on the behavior elements of interest to them,” said Pinnacle’s Principal and Consulting Actuary, Roosevelt C. Mosely Jr.

Pinnacle Actuarial Resources, Inc. is an independent, full-service actuarial firm focused on the property and casualty insurance industry.

 

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Latest Comments

  • February 11, 2015 at 6:01 pm
    Julie Lee says:
    Thanks Crain, you raise a valid point. That said, UBI apps don’t expose drivers to hacking any more than most social and online banking apps already do today. The only sure ... read more
  • February 11, 2015 at 1:26 pm
    Crain says:
    Since this app is cloud based and on the cell phone, would it not be subject to the same vulnerabilities as the dating app in the previous articles. So, the insurance industry... read more
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