Today’s connected cars collect a wealth of driving information. Car manufacturers can gain a competitive edge by installing devices in their vehicles that analyze and transmit data to insurers. Auto insurers can use that data to develop more predictive and cost-effective usage-based insurance (UBI) programs. And connected-car owners can be “rewarded” for how they drive. The Verisk Telematics Data ExchangeTM is the first-of-its-kind data link between insurers and consenting consumers who drive connected cars.
The Telematics Data ExchangeTM serves as the essential privacy and data integrity control point for automaker telematics data. It stores, analyzes, and synthesizes vehicle and driving data, facilitating the secure transmission of data between automakers and insurers. The program launches in high gear as General Motors, through its subsidiary OnStar, becomes the first auto manufacturer to sign on to the exchange.
“We believe that the Verisk Telematics Data Exchange will bring incredible benefits to the industry and our customers,” said Greg Ross, director of connected products and programs, at General Motors. “The exchange will give customers a clear choice to seamlessly share their driving data with the insurance company of their choosing and obtain the financial benefit tied to good driving.”
The data exchange handles all the details — analysis, contract negotiations, insurer relationship management, even compliance with regulators. Insurers can leave the logistical challenges of managing UBI programs to the exchange and focus on what they do best — protecting their policyholders from unexpected loss. And policyholders benefit from a more accurate insurance policy and quoting process.
“The Verisk Telematics Data Exchange has the potential to transform how drivers buy insurance and how insurers sell it,” said Jim Levendusky, vice president of telematics at Verisk Insurance Solutions. “For insurers, the availability of driving data from consenting customers can help spur innovative usage-based insurance programs, including the ability to price polices based on driver behavior. Consumers who opt in to the program and demonstrate good driving habits may be rewarded with lower insurance premiums, reducing their vehicle ownership costs.”
Verisk will officially roll out its Telematics Data Exchange in the summer of 2016.