Insurance carriers now have more information at their fingertips regarding vehicles and individual driving behavior than ever before. In previous blog posts, my colleague explained how our new vehicle build classification system normalizes advanced driver assistance features (ADAS) so you know exactly what’s on the vehicle. This information, combined with vehicle history information and connected car data, creates an abundance of data. In this blog post, I’m going to share a three-part strategy for breathing life into this data so you can get a more complete picture of risk and price accordingly. The connected car plays a crucial role.
Connected car data contributes ‘behavior’ to the equation. Behavior can make static datasets like vehicle build and vehicle history come alive. For example, by using our Vehicle Build solution you’ll know that a vehicle includes ADAS features but you won’t know whether or not those features are activated at any given time. Connected car data can tell you that. Connected car data could also provide complex driving behavior attributes, such as the number of ADAS actuations per mile. That gives you important insight into how safely a driver is driving. A driver who is over-relying on their ADAS could be considered a riskier driver.
Connected car data comes into play with odometer readings as well―another static piece of data. Mileage numbers alone don’t tell the whole story, but sequencing frequent and reliable mileage readings from the connected car allows us to create better annual mileage projections. This is just the beginning. The connected car is opening a whole new world of transforming static data into living data.
Our three-part strategy to create a complete picture of risk
Our three-part strategy is based on looking at three product families―vehicle build data, vehicle history data, and connected car data―and pushing data points between them wherever we can create synergies. Taking a holistic view is the only way you can take advantage of interactions between datasets.
For the annual mileage projection example, when we find odometer data in a connected car, we push that data into vehicle history―where the odometer data is highly sought. As a carrier, you don’t have to be our connected car data customer to reap the benefits. The same goes for vehicle build data. You won’t need to be engaged with us on telematics in order to get the benefits from the connected car information that we incorporate into our vehicle build product. Check out the blog post where we discuss how to exploit the goldmine of vehicle history to get the insights you need to make the right underwriting decisions.
When vehicle information becomes as important as behavior information
Shortly after launching our vehicle build product in June 2020, we estimate capturing 90% of the related data available in the market― when measured by 2019 auto sales. We are continuing to work with vehicle manufacturers to directly source as much of the market as possible.
What we hear from automakers is that ADAS is not slowing down. We expect new features to be released year after year. We’ve already updated our classification system to account for new features in the market. The connected car opens the door to new insights-based discounts. Because ADAS can be considered a stepping stone to autonomous driving, understanding the impacts of ADAS data can help understand impacts of autonomous functionality as it becomes more widely adopted.
The future of the auto insurance industry is a future in which what vehicle a customer drives matters much more than what it does today. Our mission is to help you by blending vehicle build, vehicle history, and connected car data into a more complete picture of risk. We are hard at work breathing life into the next generation of data so we can bring greater value to you and your customers.