UBI grows as Root Insurance joins the Verisk Data ExchangeBy Saurabh Khemka | September 24, 2019
The promise of connected car data flowing through a single hub to drive usage-based insurance (UBI) is coming to fruition as Root Insurance puts the Verisk Data Exchange to work within its UBI program.
As a participating insurer in the first and largest telematics data exchange in the United States, Root will gain access to insurance-ready driving data from consenting consumers to enhance its UBI program. The result will be “an immediate discount to safe drivers based on historical driving data coming from their vehicles,” according to Root.
The exchange uses data from multiple automakers—current partners are General Motors, Honda, and Hyundai—to help Root provide the deepest discounts for auto insurance to its safest drivers. Root’s mobile insurance application will let consumers opt in to sharing their cars’ driving history and receive quotes within seconds.
Root is able to use driving data from the exchange in its own scoring model to price UBI coverage at point of sale. And starting later this year, Root will use the exchange’s Discount Alert product, which lets insurers offer competitive insurance rates to qualified drivers based on driving behavior.
The exchange now has some 5.4 million active vehicles and more than 116 billion miles of driving data collected, and growing numbers of insurers are using the exchange to provide insurance offers to consumers.
The exchange is a platform that collects data from an array of sources within the growing Internet of Things (IoT), including connected vehicle and connected home data. Current and potential uses include more accurate rating, proactive loss mitigation services, and faster first notice of loss.
With a focus on consumer protection, the exchange works to comply with the Fair Credit Reporting Act, safeguarding personal driving information via a two-step consent process for data collection and sharing.