Connected car drivers are insurers’ next target audience

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:

  1. status/vehicle data (fuel, motor, battery status, etc.)
  2. usage-based data (driven distance, average speed, acceleration, braking, cornering, driver distraction, locations, driving context, road types, etc.)
  3. 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.

Unlocking the value of data

Data is the table stakes for growth and the ability to compete enabling vast commercial success, precision and accuracy of insight in an otherwise imprecise world. It gives the potential to move from commoditized, price-driven players to value creators. 

Implementing a telematics strategy is the start of the journey, not the end, as the real prize lies in monetizing the vast treasure trove of data it yields.

For insurers, this centers on smartphone telematics and harnessing the devices, which have taken a central role in seemingly all aspects of consumers’ lives, to tap into deep contextual and behavioral information that could forever change how the industry considers risk.

But is it all too good to be true? Will tapping into vast quantities of new data offer significant potential or does it create a whole new set of challenges that make the business case for moving beyond the traditional yearly purchase to an on-demand, usage-based model simply too hard to reconcile?

The benefits of smartphone telematics

Smartphone telematics offers a volume, variety, and velocity of data almost alien to an industry that’s relied on basic demographic and socio-economic profiling since its inception. The technology has the potential to catapult insurers from simply knowing who their drivers are and what they drive to understanding in minute detail how they drive, where, when and why.

The technological, analytical and data science skills required to understand and harness this data, knowing what to pay attention to, need building and nurturing. Not to mention the privacy, compliance and cybersecurity considerations that come with holding sensitive customer information.

All this requires leadership commitment and investment. Anyone who dismisses the implications of this new data, in favor of focusing solely on the opportunity is optimistic at best or misguided at worst. 

Three pillars of monetization 

Building a business case for both the technological and organizational investment in smartphone telematics hinges on three pillars. 

Risk reduction

Usage-based insurance isn’t simply a means to more accurate pricing, it holds the key to behavioral change. Understanding the realities of how individuals actually behave behind the wheel enables insurers to target higher-risk drivers and, with education and incentivization, help them to reduce risky driving

This risk reduction also means more loyal customers. Harnessing the data from smartphone telematics to redefine segmentation can yield significant rewards.

Better communication channel

The omnipresence of a smartphone and the permission given by a driver adopting telematics-augmented policy gives insurers the opportunity to engage in real-time, low-cost and contextual digital communications with the customer that’s actively using, and deriving value from, their app. Reliance on mass-communication channels can be replaced with highly personalized, highly relevant messages to a receptive audience, driving significant efficiency in marketing spend.

Improved retention

The relationship between a motor insurer and a driver has never truly been one of love and affection. In reality, motor insurance is a grudge purchase for many and especially painful for younger drivers or those in higher-risk occupations or geographies. But by pivoting to a personal dialogue centered on the insurer providing value, annual shopping around for better deals can be challenged by a more meaningful relationship that goes beyond the yearly invoice. If a motor insurer has had 12 months to understand the customer as a person and has responded by offering incentives and benefits based on who they are, the propensity to place value on this relationship beyond price alone can be increased.

What data to collect?

The data trails which emerge from smartphone telematics have almost limitless potential, but they can be daunting, to say the least. 

The best strategy in defining what kind of data you need is to review what kind of customer you’re targeting. After creating the best and worst buyer personas, you’ll clearly see what information you need. 

After you’ve done the research, leave the data collection to us. Fill out the form for more information:

Start building customer relationships with usage-based insurance

Customer behavior changed in many different ways in the last 10 years, they have higher expectations of goods and services and are not afraid to show it. When it comes to motor insurance, many consumers are demanding the same personalization, relevance, and fairness that they now take for granted with other products.

Also, they are aware of the value of their data and, within reason, they’re willing to share it.. Increasingly, they expect the businesses they interact with to know them, act on the data they share, and deliver value and benefit in return.

Embracing real engagement

Motor insurers must recognize, when it comes to driving apps, the tacting of offering and waiting doesn’t apply. The potency of smartphone telematics lies in inconsistent usage. The more a driver records their journeys, the more data is created, leading to a more complete, and thus accurate, picture of drivers’ lives. But we can’t rely on our customers to do this for us. It’s incumbent on insurers to shift from an annual communication with policyholders to regular, ongoing dialogue to nurture and influence their behavior.

This means creating incentives for regular driving recording. 

For some segments, motivation manifests as discounts – the more miles you record or the more days you use the telematics app, the greater the saving at stake. 

For others, it might involve a gamification approach, offering rewards of both a monetary and non-monetary nature to encourage consistent usage. When you understand your target customers intimately, you can identify the levers that will work for different groups. 

You shouldn’t be fooled into thinking that smartphone telematics offers merely young-driver or millennial-centric appeal. Older or more affluent drivers at the premium end of the car market are just as motivated to reduce their insurance costs as younger drivers typically penalized for their lack of motoring experience and a higher propensity for claims.

Make no mistake, this requires a very real step up in effort on the part of the insurer, but ever-advancing automation and algorithms are helping to lighten the load.

Risk reduction and loyalty increase

Moreover, this isn’t a source-intensive effort that simply adds cost and reduces revenue; deploying smart technologies requires an incremental investment that delivers a return on two of an insurer’s primary commercial goals – risk reduction and increased loyalty

Reducing risk leads to reduced claims, leading to reduced costs for insurers. When the app spot triggers, characteristics, or patterns of behavior associated with greater risk, you can intervene. This can be informative and educational to the driver and an effort to reinforce positive behaviors. 

Meanwhile, increased loyalty stems from the benefits you offer members of your driving community. Rewards can be as simple as points that can be exchanged for something relevant to a customer’s life, such as a free coffee or a voucher for dinner with a partner, to something more out of reach, such as driving experiences in an aspirational car for the weekend.

Understand your customers

Without a doubt, the single biggest benefit of smartphone telematics is the ability to get to know your customers; who they really are, not what aggregated statistics infer, the role of a car and transport in their life, and opportunities to add value to this. 

And the end-goal isn’t for this insight to languish in internal presentations and meeting rooms. It’s primed to help insurers to identify real segments of customers and to meet them on their terms, with what they need today or don’t even know that they need tomorrow.

This certainly drives more relevant marketing messages, but it has the potential to go so much further. It offers insurers the opportunity to identify latent needs and create new products and services based on a truth about drivers that traditional market research couldn’t get close to. 

It identifies opportunities to build an ecosystem with partners beyond the world of motor insurance to add wider value to a customer’s life, becoming “stickier” in the process and reducing the likelihood of price-driven defection.

Case in point

Our Partner Triglav is a major Slovenian insurer that launched Slovenia’s first usage-based insurance proposition based on smartphone telematics. Hailed as Europe’s most innovative insurance program in 2018, the firm went beyond the black box and invested in transforming the concept of customer engagement in motor insurance. 

They launched a smartphone app with user interface and user experience at the forefront of their thinking. Discount incentives combined with a wider portfolio of motivational and gamification techniques ensure their technology becomes an indispensable part of their customer’s lives. 

They adopted a marketing dialogue with their customers less akin to an insurer and more like the entertainment and retail brands so prominent in the daily lives of their audience. All that while taking their data responsibilities seriously and acting transparently. 

The result?

Beyond industry acclaim, Triglav captured 10 percent of the driving population within 24 months of launching. To put this into perspective, consider Italy, one of the most advanced markets for telematics with a 20-year history of embracing the technology. The proportion of drivers using telematics is at 15 percent. Or the UK, with a roughly ten-year history of telematics, boasting 4 to 5 percent of the driving population adopting the technology. The numbers speak for themselves. Redefine customer engagement and the commercial return can be potent.

Start with strategy

We believe smartphone telematics offers the unrivaled potential for an industry that’s ripe for change. But in closing, we’d urge any insurer assessing the role of technology in risk and customer propositions to ensure they’re starting on the right foot. Too often, motor insurers find a technology then develop a strategy. 

Amodo wins best overall accident/claim support award

The Aite Group, aside from consulting and events, produces various reports using qualitative interviews, qualitative and quantitative surveys. 

This year, Amodo participated in the report on how telematics systems create ways for carriers to control claims exposures and increase engagement.

We were delighted to help the research and thankful for the best overall accident/claim support award as a vendor:

“Amodo’s data-centric telematics platform provides plenty of functionality beyond just the minimum requirements. Its focus on data-agnostic processing and variable source data integration gives it a wide range of flexibility. Carriers desiring a solid foundation to build a telematics platform will find Amodo a solid choice due to its data integration ability and experience with various data sources. Amodo would benefit by emphasizing its overall flexibility and focusing on next-generation technology to provide the best proposition for carriers. Amodo wins the award for best overall accident/claim support.”

Aite Group Research; Global Commercial Vehicle Insurance: Why Insurers Need Telematics for Profit

If you’re interested in the report, click here and get in touch with the Aite Group.

How a niche pay-as-you-drive insurance product becomes mainstream


A number of different market forces shape business opportunities. For the past decade, the technology that enables pay-as-you-drive insurance products improved significantly. 

Still, the pay-as-you-drive insurance product remained nothing more than a niche market. In 2020 an actual global pandemic and a new lifestyle created a significant shift in consumer preferences when it comes to motor insurance products. 

This created a massive market opportunity for those insurance companies seeking to reposition. Stars are aligned, for the usage-based insurance (UBI) products to become the mainstream. 

The pay-as-you-drive Model (PAYD)

As the name suggests the pay-as-you-drive model depends on the amount of driving of the policy owner. Its price can be calculated in two ways: 

  • by the distance
  • or by the time (hours, days).

Furthermore, just like in the traditional insurance policies, the prices depend upon the type of vehicle used, measured against time, distance, behavior, location and additional data.

Pay-per-kilometer insurance (PPKM)

Pay-per-kilometer insurance (PPKM) within the pay-as-you-drive model, uses distance driven as the main parameter for price calculation.

It goes without saying that MTPL ( Motor Third Party Liability ) coverage remains unchanged, due to a number of reasons, but the most important one being the regulation.

Pay-per-kilometer insurance (PPKM) is firstly and mostly changing how comprehensive coverage is priced and consumed. Stationary risk and associated damages are covered on a whole year basis, whereas other risks such as collision with an animal, other car or object, bodily injuries and services such as road assistance are covered and priced on a kilometer basis.

Benefits for the insurer

With Amodo’s technology for the pay-as-you-drive model, the insurer will be able to create a new insurance product tailored to fit their users’ individual needs. Personalized offers can be created due to the collected behavior data.

This product will also differentiate the insurer from the competitors, boost brand awareness and have a positive impact on consumer perception. 

Benefits for the customers

The main benefit for the customer is the control over the cost rate because it’s based on the actual kilometers. The customer can achieve significant savings by tracking the kilometers and monthly costs. Also, the customer can get a personalized policy based on individual needs and upgrade.

Amodo’s system enables customers to manage their monthly distance “allowance” and set the parameters for the entire year, as well as to top it up with extra kilometers whenever needed.

Cost calculation

Pay-per-kilometer policies charge a daily or monthly base rate that is based on factors similar to those used when setting rates for a traditional insurance policy. The monthly bill typically is based on the number of kilometers driven in the previous month.

The base rate varies from person to person and company to company. It depends on the driver’s history, past at-fault accidents, vehicle model, age, and if the customer has a spouse or not.

Pay-per-hour insurance (PPH)

Pay-per-hour insurance (PPH), also known as hourly insurance or pay-as-you-go insurance, is very similar to the pay-per-kilometer model. The main difference is that the pay-per-hour (PPH) model based on Amodo technology, can be applied to other insurance products, besides motor insurance, as well, since cost calculation depends on the hours instead of the distance.

Benefits for the insurer

This type of insurance is new within the pay-as-you-drive model but very popular with customers. They are pleased that it’s easy to arrange and very specific to their needs.

As an insurer, it’s a great service for building customer loyalty, especially for frequent business travelers.  

Benefits for the customers

Customers have the option to define the duration of the insurance policy in advance or shortly before the trip. The policy duration can be a few hours or days if further travel is involved. 

Pay-per-hour insurance is great for long journeys shared with other drivers, business trips uncovered by the regular policy, test driving and driving tests, driving a borrowed car and more. 

Cost Calculation

Depending on the company, the only information needed is personal information and the car registration number. The cost depends on the policy duration, personal information (mainly driving experience), location and type of vehicle, among others.

The Amodo platform enables insurance companies, digital brokers and adjacent industries to market pay-as-you-drive insurance services and engage users through smartphones. With Amodos help, insurers are backed with the technology needed to launch PPKM and PPH insurance products and build their customer base.

Fill out the form down below to get more valuable information.

Amodo secures €3 million investment

Zagreb, 11th of May 2020 – Zagreb technology provider Amodo has secured a €3 million investment. The investor in this first leg of the Series A funding round is Lead Ventures, a Hungarian venture capital fund. The funds will be used for further scale-up of Amodo’s activities and markets, as well as further development of the company’s products based on telematics, primarily for insurance companies.

Amodo has developed a digital platform for insurance companies which allows them to launch personalized insurance products and services based on their client’s behavior. The platform has processed data of over 1 billion kilometers covered by about 1.5 million cars.

As driving behavior is the determining factor in assessing the risk of securing a vehicle, driver and passenger insurance companies show great interest in the application of such solutions. For example, by using Amodo’s solution insurance companies can more accurately assess the risk of their clients and therefore offer personalized insurance products based on driver behavior.

Further, insurance companies open the possibility to offer just-in-time products such as automatically offered short-term travel insurance while approaching a country border or comprehensive insurance necessary for specific road conditions the driver is frequently traveling on.

The Amodo Platform is currently used by companies such as AIG, Porsche, and BNP Paribas, while the market for usage-based insurance policies shows a great year to year growth globally. Currently, clients have purchased over 25 million contracts for 417 types of usage-based insurance products in 55 countries. Most of the major insurance companies launched or plan to launch similar services. According to predictions, by 2025, such products will provide USD 95 billion in revenues, with an 18 percent estimated annual growth.

Lead Ventures Zrt. was launched in 2018 and intends to invest EUR 100 million in Hungary and the CEE region. Lead Ventures saw potential in the US/Croatian Amodo because of the rapidly expanding market. „We made the decision to invest a total of EUR 3 million in the company for a 3-5-year period. Amodo is a swiftly growing, innovative company, which has already proven itself in the market of usage-based insurance. The company has now reached that level of development to enter new markets with proper capitalization and expand its client base. For the additional growth of Amodo, the creation of a new development center is essential, which will be established in Budapest.” – explained Balázs Haszonics, CFO of Lead Ventures and Amodo’s newest Board member.

“In the past six years, Amodo has created over 25 products in 18 countries on five continents for major international insurance companies. We plan to dynamically grow in the coming years and want to quadruple our client base by 2023. We found our ideal partner for our technological and business development and growth” – stated Marijan Mumdziev, CEO of Amodo.

Amodo was founded in Zagreb, Croatia in 2013 and is the only technology company in Croatia which has developed a telematics-based platform, thus assisting the market entry of innovative insurance products such as usage-based insurance.

Fill out the form for more information:

Pay-Per-Mile: Real-Time Policies that Fit

Two main consumer trends are shaking up the insurance industry, namely, the need for transparency and personalization. A most vivid example of the insurance product addressing modern consumer needs is pay-per-mile insurance.

The growth of pay-per-mile insurance products is enabled not only by the rapid advancements of telematics technology but also by the motivation of insurance carriers to build a more satisfied and loyal customer base. The truth is, with pay-per-mile insurance, customers can have full control over their insurance costs and achieve significant savings.

The question is where do you start as an insurance company? 

Technology possibilities today will have a huge impact on a number of business aspects within insurance companies. One of those is how insurance products are created. If we leave the motor insurance portfolio aside – since it is regulated in most markets, disruption possibilities should focus on comprehensive insurance products. Insurers need to look at each individual risk covered by their insurance products and identify potential cross-sales possibilities based on collected telematics data.

The choice of telematics technology should be considered in the earliest phases of insurance products’ creation. For example, if smartphone technology is used, pay-per-mile insurance products may not comprise car theft and parking damage risks.

On the other hand, the choice of smartphone-based telematics technology enables the collection of rich data and identification of many cross-sales opportunities within the user-base. 

How does it work with Amodo technology?

Basic Kasko insurance is the requirement for drivers to be able to use a pay per mile coverage. Basic Kasko covers the basic risks while the car is parked, then purchasing pay per mile activates the full Kasko coverage.  

Full Kasko coverage is charged and spent in kilometers, purchased and topped up at any time via the app. An available number of kilometers are visible to a user in real-time and can be easily turned on or off. This way user pays full coverage per kilometer, the same way as prepaid telecom services function. This gives users the feeling of control over their own expenses. Safe driving can enable users to earn extra bonus kilometers for full coverage.

What’s in it for an insurer?

With Amodo’s Pay-per-Mile technology the insurer will be able to create a new insurance product tailored to fit their users’ individual needs. This proposition will also differentiate the insurer from the competitors, boost brand awareness and have a positive impact on consumer perception. Finally, insurers are able to increase consumer satisfaction and loyalty.

Contact us to get more valuable information:

Whitepaper – A Marketing Funnel Perspective on UBI: What Drives Monetization?

Growth and success of smartphone-based Usage-Based Insurance (UBI) propositions are largely dependent on understanding how their marketing funnel works. Typically, one of the main goals is the conversion of users into buying customers. Which brings us to the key questions:

What drives conversion? How to guide the app users from download to conversion?

Our latest whitepaper answers these questions and discusses UBI propositions from the marketing funnel perspective. It builds on Amodo’s global experience and a number of research projects focused on this concept.

We highlight the key ideas and experiences, and outline major challenges and limitations, as well as discuss each marketing funnel phase by considering its role and effect in monetization.

A Marketing Funnel perspective on UBI: What Drives Monetization?


Connected Insurance: better policies with the help of car data

All players on the motor insurance market need to embrace the connected car information and find ways to utilize it to engage users. There are 3 main areas insurers can use car data for and that helps them stay relevant in the customer’s eyes.

Let’s start with the most important person in any vehicle for insurance companies – the vehicle owner. Vehicle owners are people that are most likely to drive the car, pay for all relevant maintenance and service costs, and are also purchasing insurance policies for their tin pets. They also want to know what is happening with the car. Sure, the driver dashboard gives them some information, but it is only the basics that mean much more to a mechanic than to a regular Joe.

We can compare the evolution that started happening in insurance to the experience of supermarket shopping – it was okay to offer only brick and mortar stores that have anything people might need within them in the 90s, but today a lot of shopping happens online and even more shopping decisions – such as which supermarket to go to, and what to buy there, whether to order online or go to a physical store. Traditional retailers still exist, but they are surviving rather than thriving.

The same is happening with the insurance industry- there are traditional insurers who still do sales exclusively through agents, but they are being challenged by digital insurance brokers, digitalized traditional insurances and similar companies that are taking their chunk of the market. In order to compete and stay relevant, all players on the motor insurance market need to embrace the connected car information and find ways to utilize it to engage users. 

This brings us to 3 main areas insurers can use car data for and that helps them stay relevant in the customer’s eyes.

Bottom-line goals support

Connected car data can help insurance companies reduce claims. Before someone becomes a client, this type of data can allow insight into their driving patterns, which impacts the driving risk assessment strategy, allows a better choice of drivers and possibility to offer uncompetitive rates to others, while monitoring driving behavior throughout the customer lifecycle. This type of positive discrimination in choosing clients is called the self-selection principle. 

Reducing claims and better risk prevention

If connected car data is coupled with an app that allows direct communication to the customer, it also enables insurers to impact the driving behavior in order to reduce claims. Like UBI, if special attention is given to already recognized high-risk segments, the payoffs in the opportunity cost of not insuring the riskiest drivers will be higher.  

It comes down to the risk prevention strategy of the insurer. It is possible to set up special gamification mechanisms for different segments of users which encourage them to exhibit certain types of behavior. 

For example, if a specific area is notorious for speeding, gamification mechanisms can reward driving under the speed limit in that area. If someone is accelerating and braking a lot or has a lot of phone handling events during trips, that is something they need to be encouraged not to do, or to use a hands-free device if it is necessary to accept calls.

Last, but with the possibility of making a massive impact, is receiving the first notification of loss (FNOL) with information coming directly from the car that can help reconstruct the accident and minimize the possibility of fraud. The first notification of loss means that an accident is reported as soon as it happens. This drastically reduces the likelihood of faking injuries or the amount of material damage that happened in the accident. 

Increased customer loyalty

Imagine this – insured vehicle runs out of oil and their phone battery is dead. Insurers can get notifications on things like this, with their GPS coordinates, which will enable insurers to send help and make sure customer gets a rent a car, accommodation, or whatever else they need at that moment, depending on how serious the damage is. Possibility of this can be an added coverage in cases of longer travel for customers that are servicing their cars regularly. This can also work with sending police and an ambulance in case of a crash.

Connected car information allows insurers to offer additional rewards – like free tire storage for customers that are acting as a responsible owner and are in such areas that they are less likely to get into a situation where they would file a claim. Also added benefits are something they will get used to and it will become a barrier to exit if they start thinking about shifting motor insurance providers.

Car thefts are an increasing problem. Newer vehicles end up in chop shops and are used for spare parts before the owners are even aware of the fact that their vehicle is gone. Connected car data helps by allowing owners to get a notification if their car is not where they think it is, and that allows them to react in the shortest period of time – often a key differentiator between cars that are saved and brought back to their owners and those that are never retrieved.

Competitiveness and top-line goals increase

Connected to the point made above, connected car data helps insurers become a marketplace where car owners can satisfy all their needs. Not just roadside assistance, it can be connected to longer service chain with carwashes, mechanics, tire repair shops, emergency services, etc. As an insurance company, this is opening the possibility of new revenue streams.

A connected car combined with a smartphone offers a complete picture of someone’s behavior. That allows different cross-sell opportunities, like different types of short-term insurance, insurance shields for certain types of damages, etc.

Working with the Amodo platform

Amodo can provide information coming directly from the connected car through an API. We can also provide an app or SDK that would help you get the full picture of the customer and engage them to get the most value.

Fill out the form below for more information:

Why is connected car data relevant for insurance companies?

We will go into detail about how and why insurance companies can benefit from utilizing connected car information.

Vehicles that were produced after January 2016 have the option to send valuable information for insurers directly from the car. The types of information connected cars are creating are:

  • fuel status, driven distance, electric vehicle battery status, vehicle lock status, lighting, rooftop, door positioning status, and more.

The type of information that is been send depends on the car manufacturer providing the information.

More real-time data provides opportunities insurance companies cannot afford to miss in this hyper digitalized and personalized age. They surpass the obvious usage-based insurance use cases and open new horizons.

How is connected car data different from other telematics data sources?

The choice of the best data source really depends on the business goals of the insurance company. There are 3 basic sources: a black box, smartphone-based telematics and the car itself.

Black box data vs. connected car data

Black box devices such as dongles and beacons can be connected to a car’s diagnostic port and gather information from the vehicles. Even though these devices provide reliable data that is useful to the insurance companies, there are certain logistics and support challenges connected to using them as a reliable source of information.

At the implementation stage, they can be expensive to implement. Even if we ignore the cost of the device, they require a SIM card to send the data, a visit to a service center where the physical device will be placed into the car. Ongoing maintenance of all issues that arise with operators and regular replacement of devices after their batteries die, which requires another visit to the repair shop. 

The biggest advantage in black box devices is seen in the used vehicle market because they can get information that would otherwise be unavailable for these vehicles, like the battery status, error codes for minor issues that would not cause the driver dashboard light to switch on, etc.  

Car manufacturers started implementing blockers into newer vehicles to prevent devices from being plugged in and to assure that official car manufacturer service centers and programs are being used.

On the other side connected car data is relatively easy to get a hold of. You only need a data provider, like Amodo, and signed consent from the vehicle owner. Compared to black box data, it is cheaper and easier to get a hold of. 

The limitations here are that you can only get a predefined set of information the car manufacturer defines, and it is not possible to perform detailed scans of the vehicle as it is with dongles. It is also possible to get the information only from vehicles produced in January 2016 or later. 

The good news is that if this information is used to increase the top-line goals, this is the perfect segment for customers that are ready to spend more to get a premium service. Information such as mileage is precise, comes directly from the car and minimizes the chance of fraud in cases like pay per kilometer insurance.

Smartphone data vs. connected car data

Smartphone data is very accurate and reliable if the location services are on in the mobile phone and if the application has an automatic recording. In case manual recording is required, it is possible to record only trips that the driver wants to record. 

There are different gamification and engagement tactics that can be employed in order to increase the reliability of smartphone data. Smartphones are useful as they are always close to the data source (the person being insured) and can help gather more useful information than just the car movement. A person’s whole life and lifestyle can be decoded based on movement patterns.

While smartphone data needs to be cleaned from the noise, connected car data is available off the bat. It can be enriched and contextualized using information smartphone data, but in most cases, there is no need to add this additional context. One aspect connected car data misses is the ability to communicate to the end customer and monetize. 

Choose the right data source

The data source you’ll use in your company depends on your business goals and uses cases that fit in with those goals. Amodo can provide information coming directly from the connected car through an API. We can also provide an app or SDK that would help you get insights into customer behavior. 

Contact us to get more information on how to get access: