(Image credit: Gerd Altmann.)
Root Insurance, a Columbus, Ohio-based provider of usage-based insurance (UBI), has joined the Verisk (Jersey City, N.J.) Data Exchange, which the vendor characterizes as the first and largest telematics data exchange in the United States. As a participating insurer, Root will gain access to insurance-ready driving data from consenting consumers to enhance its UBI program.
“We’re excited to be one of the first insurance carriers in the country to provide an immediate discount to safe drivers based on the historical driving data coming from their vehicles,” comments Kumi Walker, chief corporate development and strategy officer, Root. “The Verisk Data Exchange lets us use data from a variety of automakers to provide the deepest discounts for car insurance to the safest drivers. Root’s best-in-class mobile insurance application lets the consumer opt in to sharing the car’s driving history and provides a quote to the customer within seconds.”
Pricing UBI Coverage from Point of Sale
As a result of joining the Verisk exchange, Root reports that it is now able to use driving data from the Exchange in its own scoring model to price UBI coverage at point of sale. Also starting later this year, Root says it will use the exchange’s Discount Alert product, which lets insurers offer competitive insurance rates to qualified drivers based on their driving behavior. Using Discount Alert, Root can provide a seamless digital buying experience for the customer by marketing directly to drivers in the exchange seeking insurance offers.
“The Verisk Data Exchange continues to expand, with more than 5 million active vehicles, 100 billion miles of driving data collected, and a growing list of insurance carriers using the exchange to provide insurance offers to consumers,” comments Saurabh Khemka, senior VP and general manager, Verisk IoT/Telematics. “The scale we’ve achieved by working with automakers and insurers has the potential to drive a transformation in auto insurance through companies like Root, which is pioneering the delivery of connected car benefits to consumers.”
As a hub for connected vehicle and connected home data, the Verisk Data Exchange is the insurance industry’s leading Internet of Things (IoT) platform, helping personal and commercial lines insurers achieve more accurate ratings, proactive loss mitigation services, and faster first notice of loss, according to a Verisk statement. The vendor says the exchange is focused on consumer protection and compliance with the Fair Credit Reporting Act, safeguarding personal driving information via a two-step consent process for data collection and sharing.
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