As the autonomous car becomes a reality, auto manufacturers and insurers must connect with the right partners and leverage platforms that make the most of their connected car data to gain a competitive edge.
The automotive ecosystem is undergoing a transformation: personal vehicles are increasingly digitized; alternate options such as ride-sharing are gaining in popularity; the autonomous vehicle is becoming a reality. Insurers, auto manufacturers and technology providers each play an important role in this ecosystem transformation. Those who lead it will gain the most benefits. Those who hold back risk being left behind.
Insurers who proactively engage in reciprocal relationships with forward-thinking auto manufacturers and technology providers can accelerate this transformation, while at the same time help manage and reduce emerging risks. These insurers are leveraging technology capabilities that collect and normalize driver, user and vehicle data across devices, opening the door to new revenue opportunities and improved customer experiences.
Third party vendors are playing a game-changing role by providing applications that facilitate the data collection process. The LexisNexis® Telematics Exchange, a device-agnostic end-to-end telematics solution, is a vital component in this effort. The Telematics Exchange is helping to drive a new model of relationship between insurers, auto manufacturers (OEMs), third party vendors and technology providers.
The exponential growth of usage-based insurance, and its implications
Usage-based insurance (UBI) and the telematics capabilities that support it are visibly gaining traction in the marketplace and delivering value for customers and insurers alike. Over the past decade, LexisNexis Risk Solutions has become a trusted partner in helping the industry benefit from UBI. The Telematics Exchange extends this value and ultimately, it will allow OEMs to integrate vehicle data into insurers’ existing UBI programs.
Recently, LexisNexis Risk Solutions announced engagements with auto manufacturers and app providers to identify untapped consumer opportunities in telematics. The information gleaned from these efforts will help insurers quickly develop new business models that address their customers’ needs in preparation of the growing telematics and autonomous cars era. Early adopters in the OEM space will also have the opportunity to better understand consumers’ usage of their vehicles, and thus glean insights to inform new design specifications that enable greater driver safety.
Advanced Driver Assist System (ADAS) features are already providing insights that can help determine the future of the autonomous car, and how to best address insurance needs in this future. Insurers who embrace telematics initiatives will have a competitive edge in developing insurance programs for the driverless car.
As more cars become connected, auto manufacturers will have an even greater ability to collect driving data and integrate it into the LexisNexis telematics platform—thereby gaining powerful data analytics capabilities. This feedback loop enables auto manufacturers to continually provide value-added products and services that encourage safe driving and enhance the customer ownership experience.
If your company would like to be part of this ecosystem transformation, please feel free to inquire about participating in a Proof of Concept with LexisNexis Risk Solutions. Contact us online or call us at 800.869.0751 (US) or 023 9298 5430 (UK).