JERSEY CITY, N.J., September 13, 2010 — ISO announces the launch of a new vehicle decision tool that will provide insurers with a unique method of analyzing driving location risk using GPS data from telematics devices. The patent-pending GeoMetricTM vehicle decision tool will allow insurers to assess the risk of an insured based on actual driving locations — while also keeping the insured’s driving locations private.
Many auto insurers are interested in using telematics to collect accurate data on driving locations to develop differentiated, cutting-edge auto insurance products. However, there are obstacles related to technology, data management, analytics, and cost to overcome that can result in years of delay. In addition, some consumer and privacy advocates object to the use of Global Positioning System (GPS) data to record driving behavior and vehicle location as an infringement of privacy.
“The GeoMetric report has been designed to allow insurers to differentiate their driving behavior programs from competitors through analytics with minimal development,” said Steven Craig, general manager of Applied Informatix® and A-PLUSTM. “In addition, GeoMetric reports will assess driving location risk without compromising a policyholder’s privacy regarding where they have driven.”
“Our nationally representative survey on telematics conducted this past June with more than 1,000 Americans indicates a desire for privacy, but a willingness to share some detail or information that would allow a more individualized insurance premium. We designed GeoMetric to provide insurers with the information needed to make better decisions when creating more individualized products while protecting policyholder privacy.”
The GeoMetric report service is the first product available from ISO’s Applied Informatix unit, which was established to gather and analyze data from installed telematics equipment. ISO has filed a patent application related to the technology in this product.
Since 1971, ISO has been a leading source of information about property/casualty insurance risk. For a broad spectrum of commercial and personal lines of insurance, the company provides statistical, actuarial, underwriting, and claims information; policy language; information about specific locations; fraud-identification tools; and technical services. ISO serves insurers, reinsurers, agents and brokers, insurance regulators, risk managers, and other participants in the property/casualty insurance marketplace. ISO is a subsidiary of Verisk Analytics. For more information, visit www.verisk.com/iso and www.verisk.com.