I’ve spent a lot of time talking with automakers and insurance carriers about how they can come together to improve the customer experience of vehicle ownership. Until recently, there really wasn’t a way to turn connected car data from automakers into tangible driving behavior insights at a sufficiently large scale that can be leveraged within insurers’ existing workflows. This is what I like to refer to as “bridging the gap.”
Luckily, the foundational resource for constructing the bridge for connected car and telematics data is already in place and ready to be put to work. This data can provide insights about customers, their vehicles and how the vehicle is used. When optimized, these insights translate beautifully to improving the experience for the customer, the insurer and the automaker.
The important thing to appreciate is this: the information is here. In my opinion, things are going to evolve quickly from this point. It’s going to create a lot of opportunities to improve the experience for insurance carriers, automakers and their shared customers.
Connections with Automakers and Insurers
Telematics is already being utilized beyond the traditional rating and underwriting use cases. Insurance carriers and automakers are starting to deploy this data in both claims and lead generation. I believe that there is even a roadmap that spans beyond the traditional scope of insurers and automakers.
We’re nearing the day where telematics goes beyond the existing paradigm of a UBI offering to something that is truly part of the fiber of all policies today. Both the automotive OEM and auto insurance industries are going to continue to evolve separately. But, what gets me the most excited is truly focusing on how we can evolve, grow and innovate together to deliver the best customer experience for all. On one hand, automakers can provide added value by giving their customers a way to use their own driving benefit while simultaneously creating new revenue. On the other hand, insurers can give their customers a more tailored and personalized insurance experience while building a better book of business. Thus, by bridging the data gap with market solutions that bring both the insurer and automaker, they have the ability improve the experience, retention and loyalty and overall satisfaction of their shared customers.
LexisNexis® Risk Solutions has a unique position in the telematics space because we operate both an aftermarket app and one of the largest telematics exchanges in both the U.S. and Europe. With our proprietary exchange, we’re able to consume disparate data streams from different automakers that may have very different hardware and firmware platforms. We then normalize and deliver the data in consistent, uniform and timely insights when the insurer needs it and in the methods they already consume data from us.
We will soon announce a new solution that brings normalized connected vehicle, mobile app and third-party data forward in the insurance quoting process. With this new solution, insurance carriers will be able to get enriched, accurate and timely telematics data at the point of quote – right alongside credit, MVR, claims history and all the other information that goes into a standard multivariate rating plan – for better pricing and an improved customer experience.