Unlock the power of connected car data for creating usage-based insurance products and improving your risk assessment.
Telematics technology has made it possible for you, the Insurance Carriers, to create usage-based products for a while now, and connected cars are increasing their role in the future of telematics.
Car manufacturers and OEMs broadly equip their vehicles with telematics systems for various services, and the development of such systems will accelerate in the coming years. The question is, how can you use the data collected in connected cars to create new insurance products and improve your risk assessment?
Your clients are well familiar with the high technology their cars entail and want to make their life easier by enforcing it in every way possible. Think about how Tesla users use self-driving capabilities or summon their car to their location. Drivers are willing to give access to their data in exchange for a product with meaningful value to them.
Now is the time for you to guide connected car owners to usage-based-insurance (UBI) products modern customers deserve.
A great use case by BMW and Toyota
BMW is pioneering sharing such vehicle diagnostics data through its CarData program, and several OEMs should follow.
This program offers value-added services such as driver behavior interaction and the possibility of claims automation! It’s available throughout Europe and offers tailored insurance services for BMW and MINI drivers while following strong data protection rules.
Another great program with more than 25,000 vehicles is the TOUGH Connected Car insurance program from Toyota and Aioi Nissay Dowa Insurance. It entails a new telematics Damage Service System, an accident response service that uses driving data acquired from connected cars.
Connected cars and usage-based-insurance products
Usage-based-insurance (UBI) products are the solution your clients are looking for, whether they know it or not. Why?
These are the types of data their connected cars are already collecting:
- status/vehicle data (fuel, motor, battery status, etc.)
- usage-based data (driven distance, average speed, acceleration, braking, cornering, driver distraction, locations, driving context, road types, etc.)
- event data (service requirement, etc.)
As Insurance Carriers, you can use all of this data in some kind of UBI product. You can use the data regarding driven distance for a pay-per-mile product or ABC events for creating a pay-how-you-drive product. You should reach into this data pool and build UBI products with data that users’ cars already collect.
Everyone, including your clients, is aware that we live in a hyper digitalized and personalized age where real-time data is everything. The rise of connected cars enables you to use real-time data to create personalized offers and stronger client relationships. Your clients are ready for that step.
The process of gaining access to that data is as follows:
Connected car drivers have access to their data profile, where they can see their driving history, car service status, and similar information. They can also give third parties access, such as Insurance Carriers, to use that connected car data for various things like UBI products, fleet management, and more. You need to request access to that data.
This data enables you to use different usage-based products like pay-per-mile (PPM) or pay-how-you-drive (PHYD). It gives you the power to employ gamification and engagement tactics that can affect stronger customer relationships.
The PHYD model encourages safer driving by giving users a driving score that defines how secure they drive and rewarding them with better policy prices. It also gives you a detailed insight into risk assessment.
Also, UBI products provide Insurance Carriers with accident detection and reconstruction to ease the claims management process.
How to reach connected car users?
Acquiring new clients can be the most challenging step in your sales flow.
Here’s where the Amodo platform comes in!
Depending on the chosen region, the platform connects you with different car manufacturers building connected cars and OEMs.
This way, you’ll be in touch with your target audience from the best position possible – right after purchasing a car. The Amodo platform can provide information coming directly from the connected vehicle through an API.
For more information on how you can reach connected car owners, and create your program, fill out the form below.