(Illustration promoting the manufacturer’s MyHonda connected car IoT ecosystem. Source: Honda.)
Verisk (Jersey City, N.J.), a provider of data analytics solutions to the insurance industry, announced that American Honda Motor Company (Torrance, Calif.) has signed an exclusive agreement with Verisk to join the Verisk Data Exchange. As a participant in the exchange, Honda will provide Verisk with driving data from consenting owners of Honda’s connected cars.
Verisk reports that Honda’s participation results in benefits to both insurers and Honda’s customer. Honda customers can access the Verisk Driving Score, a simple metric that rates their driving behavior; and insurers can use scores from the Verisk Data Exchange with their usage-based insurance (UBI) programs through a related rating rule available for use in 43 states.
The addition of Honda increases the total market share of automakers participating in the Verisk Data Exchange to 27 percent as represented by vehicles sold in the United States, according to the Verisk announcement. The exchange receives real-time driving behavior data from connected cars and makes it available to insurers to offer UBI policies, typically designed to reward safe drivers.
“We’re excited to welcome Honda to the Verisk Data Exchange,” comments Saurabh Khemka, senior VP and general manager, Verisk IoT/Telematics. “Honda is a terrific addition to our growing roster of automakers and telematics service providers. And with multiple insurers already using the exchange for underwriting and claims solutions, I think we’re on the cusp of helping transform the insurance industry.”
The strategic and financial opportunities presented by rapidly increasing volumes of data coming from connected cars and drivers have attracted the attention of multiple stakeholders, including OEMs and Auto Insurers, according to Stephen Applebaum, Managing Partner, Insurance Solutions Group.“These industries have not historically cooperated since they both seek to own and control their relationship with the same common customer,” he comments. “With the emergence of trusted intermediaries such as Verisk, LexisNexis and CCC and their Telematics Data Exchange solutions, both industries now have a forum in which they can participate and share the potential benefits of the new use cases this information can generate.”
More Accurate Rating, Proactive Loss Mitigation, Faster FNOL
Verisk describes the Exchange as a hub for connected vehicle and smart home data, and the insurance industry’s leading Internet of Things (IoT) platform helping personal and commercial lines insurers achieve more accurate rating, proactive loss mitigation services, and faster first notice of loss. The exchange now includes close to 3 million cars with 26 billion miles of driving data and is growing at the pace more than 150,000 vehicles every month, according to Verisk.