(Photo credit: Robert Jack.)
Driveway Software (San Mateo, Calif.) and Pinnacle Actuarial Resources (Bloomington, Ill.) have partnered on a coordinated usage-based insurance (UBI) solution that includes driver scoring. The offering combines Driveway’s software and Pinnacle’s rating, actuarial and regulatory guidance, the components of which are offered à la carte so insurers can choose technology, consulting or scoring individually, or together as the coordinated package.
“Insurers know they need to break into UBI, but some are unsure about the best way to approach filings, rating and product management,” comments Igor Katsman, CTO, Driveway Software. “Now, with our technology and Pinnacle’s guidance, insurers can control their exposures and launch a UBI program that will deliver a more accurate price to the consumer with a better loss result for the carrier. Best of all, they can hit the ground running because Pinnacle already knows how to work with our technology and data.”
Driveway Software’s UBI technology works through a smartphone app and a cloud-based platform that eliminates the costs and inefficiencies of onboard diagnostic device (OBD)-based programs, which have proven a stumbling block to early adopters of UBI, according to the vendor. The Driveway solution continuously tracks driver behavior—e.g., time of day, garaging location, braking, cornering, speeding and mileage—using the smartphone app. Data is transmitted from the app to a secure cloud where a proprietary analytical platform processes the data of each individual risk component to derive a scored result for each risk element, as well as an overall safety score for each trip captured.
Driveway characterizes its app as the first in the industry to feature automatic trip detection without any user or hardware dependency, or adverse impact on smartphone battery life and performance. More than 200,000 drivers have already downloaded and used the app, giving Driveway and Pinnacle the opportunity to collect and analyze more than 500 million miles of driving data, according to a Driveway statement.
Significant value of the Driveway/Pinnacle partnership derives from the latter’s status as a pioneer and thought leader in UBI, according to a Driveway Software statement.
“Applying Pinnacle’s analytics capabilities to half a billion miles of driving data provides insurers with a credible basis to incorporate driver behavior scores into their rating plans,” comments Pinnacle’s Mosely. “The scoring is easily customizable, allowing companies to focus only on the behavior elements of interest to them.”