(Image credit: Karolina Grabowska/Kaboompics.)
Verisk (Jersey City, N.J.), a global provider of data analytics to the insurance industry, has launched the next generation of its advanced telematics scoring model, the DrivingDNA Score. With an associated rating rule and expansive state rollout plan already underway, the updated and enhanced score can make usage-based insurance (UBI) market entry and expansion easier with straightforward implementation and a single API, according to a vendor statement.
Verisk says that the DrivingDNA Score provides the following advantages, as enabled by the growth of the Verisk Data Exchange and its 260 billion miles of driving behavior data:
- Indicates a powerful separation between the best- and worst-risk groups with a 12 times difference in expected losses
- Can improve insurers’ risk segmentation 5.5 times above traditional rating variables
- Gives insurers the ability to calculate precise, percentile-based risk scores using as few as ten weeks of driving data
- Provides multisource compatibility—including telemetry data from connected cars, OBD-II hardware and mobile apps—while retaining uniform performance
- Incorporates advanced analytics to adjust for seasonality effects and, optionally, distracted driving
- Leverages advisory and government relations capabilities of ISO, a Verisk business, for trusted, actuarially-justified, state-level filings
“Consumer interest in auto insurance pricing that is more reflective of individual driving risk is surging, so behavior-based rating has become a strategic imperative for insurers,” comments Joe Wodark, general manager of Verisk’s IoT and telematics business. “The pre-filed DrivingDNA Score makes it easy for our insurance company customers to enter this exciting market with confidence, grow their programs profitably, and deliver a compelling customer experience.”
Verisk says insurers can use the DrivingDNA Score to deliver an enhanced UBI purchase experience to over 8 million connected car drivers who have consented to share their driving data with the Verisk Data Exchange. When these eligible drivers begin a quote, their score and personalized discounts can be calculated immediately at point of sale, without the need for lengthy driving observation periods, the vendor says.
A new Verisk Distracted Driving Score is also available as an optional feature for insurers with mobile-based programs. This score can adjust the DrivingDNA Score by measuring phone-handling events that have been contextualized by the speeds at which they occur, Verisk reports.
Verisk characterizes The DrivingDNA Score as part of a portfolio of point-of-sale solutions designed to aid insurers on their telematics journeys. The vendor says that several top-10 national insurers, as well as regional carriers and InsurTechs, already rely on its data, scores and advanced analytics to support streamlined market entry and ongoing program growth.
Driving DNA Portfolio
The DrivingDNA portfolio also includes DrivingDNA Data, normalized driving behavior data attributes and mileage information from drivers across multiple leading automakers, and access to DrivingDNA Lab, a research and development environment where an insurer can study the impact of Verisk’s score and telematics data attributes on its existing portfolio.
“With insurers at different stages of UBI development, our DrivingDNA suite of solutions have a proven track record of helping insurers overcome common product development challenges, providing access to data, and furthering their UBI strategies,” Wodark adds.
Verisk operates the Verisk Data Exchange, an IoT and telematics platform that provides personal and commercial lines insurers data from the connected ecosystem. The Exchange works with several automotive manufacturers—including General Motors, Honda, Hyundai, and Ford—and applies advanced analytics and artificial intelligence to generate insights that enable superior decision-making across the life cycle of insurers’ telematics programs.