Property/casualty insurance data supplier Verisk Insurance Solutions has formed a strategic alliance with Silicon Valley’s Driveway Software to jointly develop a smartphone telematics product for automakers, insurers and drivers.
The product will combine the Driveway smartphone telematics platform for data collection and driver engagement with Verisk’s own telematics data unit, Verisk Data Exchange, to apply driver scoring and provide a direct connection for consumers to participating insurers offering usage-based insurance (UBI) that reward safe drivers.
The product will leverage Driveway’s patented trip-capture technology and Verisk’s insurance analytics and experience in filing UBI rating rules.
The products will be sold to vehicle original equipment manufacturers (OEMs), their customers and participating insurers in U.S. and global markets through the Verisk Data Exchange, a data exchange for driving history that Verisk launched in July 2016. The exchange contains driving data from all kinds of connected vehicles for use in underwriting, rating, and claims handling and connects automakers and telematics service providers to multiple insurers. Consenting connected-car owners will have the option to contribute their driving data and take advantage of insurers’ UBI programs.
The announcement said General Motors is the first auto manufacturer to sign up for the Verisk Data Exchange.
Driveway has patented technology that enables insurers to measure and reward good driving behavior without the need for a plug-in device in the car. Its smartphone app will allow automakers to bring the benefits of telematics to existing customers who are not leveraging connectivity in their car.
“Most OEMs are implementing connected-car solutions in new vehicles,” said Jim Levendusky, vice president of telematics at Verisk Insurance Solutions. “However, many vehicles without embedded connectivity cannot deliver a connected-car experience to their drivers. The Driveway/Verisk telematics smartphone solution will close this gap.”
The Verisk Data Exchange also assigns consumers a driver risk score, generally similar to a credit score, that they can use to demonstrate their responsible driving history and to request that their car insurance premiums be adjusted accordingly.
“The Exchange provides automakers a one-stop solution to help their customers get the benefits of UBI,” said Mike Simmons, CEO of Driveway Software. “Rather than building and managing relationships with hundreds of insurers, automakers can have a single point of contact in Verisk Insurance Solutions, which has long-standing relationships throughout the insurance industry.”
Verisk is no stranger to telematics-related services. Among its offerings are two programs that it has filed with state regulators: Safety Scoring, a behavior-based program, and GeoMetric, a location-based program. Safety Scoring translates real driving data into a risk score for insurers to use in rating and awarding discounts. The GeoMetric program creates a process for insurers to reward policyholders who drive in what Verisk’s data show are areas safer than where their vehicles are garaged.
In June 2015, Verisk teamed with another technology firm, Vehcon, to provide insurance companies with the ability to collect automobile odometer readings for insurance rating and UBI programs using a policyholder’s smartphone. Verisk said this product, OdometerConfirm, remains a separate offering.
Was this article valuable?
Here are more articles you may enjoy.