ISO has announced that it will equip more than 600 ISO company vehicles with telematics devices to monitor and record data about driving behavior. Information will include Global Positioning System (GPS) and On-Board Diagnostic (OBD-II) data for vehicle information and 3-axis accelerometer data for driving maneuvers.
Telematics data can provide predictive value to insurers through various methods. Iso said that the project will help its Applied Informatix unit assess the methods needed to leverage this new source of data for analytics to predict loss and streamline rating, underwriting, and claims workflows.
According to Steven C. Craig, general manager of Applied Informatix and A-PLUS, using the ISO fleet as a source of telematics data will provide the analytics staff “an invaluable test bed for product development and telematics data troubleshooting.”
ISO created the Applied Informatix business unit to gather and analyze telematics data from devices installed in private passenger and commercial vehicles. The unit also plans to mitigate the obstacles currently experienced by insurers who wish to collect and use driving behavior data to create differentiated auto insurance products.
“By equipping the ISO fleet, we will gain firsthand knowledge of all aspects of such a program from installation, activation, data collection, and processing to linkage of claims and policy data,” said Craig.
ISO is working with Geotab Inc. to equip the ISO fleet with Geotab’s plug-and-play GO5 telematics device. GO5 offers Geotab’s patented tracking algorithm, which recreates vehicle trips and incidents.
In addition to contributing to the ongoing Applied Informatix telematics study, ISO expects to reap other benefits, according to Craig. “We want to use the technology to help our risk management program increase fleet safety and efficiency, thereby reducing costs while supporting ISO’s green initiatives,” he said.
To support the telematics initiative in the insurance industry, ISO has joined the Connected Vehicle Trade Association (CVTA) as a board member. CVTA is a nonprofit business league established to facilitate the interaction and advance the interests of the entities involved in the vehicle communication environment.
Was this article valuable?
Here are more articles you may enjoy.