(Image source: TrueMotion homepage.)
Verisk (Jersey City, N.J.), a provider of data analytics solutions to the insurance industry, has announced an agreement with TrueMotion (Boston), a smartphone-based driving data platform, to offer integrated telematics solutions for insurers that combine TrueMotion’s mobile data with Verisk’s driving behavior analytics.
Saurabh Khemka, SVP, General Manager, Verisk IoT/Telematics.
To develop the new solutions, Verisk says it will receive driving data collected through TrueMotion’s smartphone telematics platform and apply its Verisk Driving Score, which is currently filed and ready for use in 43 states. The agreement will help midsize auto insurers, among other insurers, quickly deploy or enhance existing usage-based insurance (UBI) programs, the vendor asserts.
“Verisk’s work with multiple insurers, including those with midsize books of business, has shown the many hurdles they face in launching UBI programs,” comments Saurabh Khemka, senior vice president and general manager of IoT/Telematics at Verisk. “These challenges include developing a proprietary scoring algorithm that works across multiple sources of driving data, such as connected cars and mobile apps. It may be cost-prohibitive to launch a mobile solution in-house. An insurer needs IT and data science resources to build apps, integrate scores, and automate logistical processes. Additionally, filing a proprietary score with regulators can be a difficult process.”
Image source: Verisk. (Click to enlarge.)
Highly Predictive Measure of Risk
As part of the agreement with TruMotion, Verisk says it will score driving behavior data—a highly predictive measure of risk—to enable multiple use cases for insurers. This includes potential good-driver discounts, driver feedback, and other forms of customer engagement.
“Insurers need driving data to power the next generation of insurance, whether it comes from a connected car or a smartphone,” comments Ted Gramer, CEO, TrueMotion. “Midsize insurers, in particular, struggle to collect driving data because they lack the resources to launch telematics programs in-house. Our alignment with Verisk will unlock the power of mobile telematics for these insurers and give them unprecedented access to driving data.”
TrueMotion says its smartphone telematics platform is designed to give insurers actionable insights to apply scoring to their customers’ driving behavior with only their phone. It uses a phone’s sensors and machine learning to accurately identify when a person is driving, how the person is driving, and if the person is distracted while driving. Insurers working with Verisk can deploy TrueMotion’s patented technology through a white label mobile app. Customers can simply download the insurer’s app and begin to drive.
“Our customers are looking for a common scoring solution for their telematics programs across different technology platforms,” adds Khemka. “By teaming up with TrueMotion, we’re bringing the strengths of each company together for the benefit of our insurer customers.”