In an interview with A.M. Best Radio, Neil Spector, president of Underwriting Solutions for Verisk – insurance solutions, shares his perspectives on the future of usage-based insurance (UBI) and discusses why he believes the Verisk Telematics Data Exchange™ will help accelerate widespread UBI adoption.
The exchange, which launches this year, is the first-of-its-kind data exchange between insurers and consumers who drive connected cars. In September 2015, General Motors, through its subsidiary OnStar, became the first auto manufacturer to sign on to the exchange.
“Many insurers have expressed interest in connecting [to the data exchange] right out of the box,” says Spector. The exchange also appeals to automakers because they will have an opportunity to capitalize on their connected-car data. Consumers should benefit as well when they choose to opt in, as they’ll be rewarded with insurance discounts in return for safer driving and will have greater choice through the exchange, he adds.