GM First Automaker to Join Verisk Telematics Data Exchange
Staff Writer | September 03, 2015
Verisk Insurance Solutions introduces the Verisk Telematics Data Exchange, a data link between insurers and consumers who drive connected cars. Consenting connected-car owners will have the option to contribute their driving data and seamlessly take advantage of insurers' usage-based insurance (UBI) programs designed to reward them for how they drive.
Auto insurers will have expanded access to connected-car data in an easily usable format, paving the way for new and innovative UBI programs. General Motors, through its subsidiary OnStar, is the first auto manufacturer to sign on to the exchange. Verisk will officially roll out its Telematics Data Exchange in the summer of 2016.
"We believe the Verisk Telematics Data Exchange will bring incredible benefits to our customers," says Greg Ross, director of connected products and programs, at General Motors. "The exchange will give customers a clear choice to seamlessly share their driving data with the insurance company of their choosing, and obtain financial benefits tied to good driving."
"Auto insurers have historically assessed risk using proxies such as age, marital status, and credit-based insurance scores," says Neil Spector, president of underwriting at Verisk Insurance Solutions. "However, the most accurate and fair measure of driver risk is how, where, and when policyholders drive. Many insurers have launched UBI programs using plug-in devices or smartphones to capture driving data. But the cost constraints and technology challenges of those data collection methods have limited the widespread adoption of UBI programs."
Verisk offers two UBI scoring models that have been filed widely with state regulators. The company will develop additional models and filings to assist insurers without telematics models to use data from the exchange. Insurers that have their own telematics models can also consider connecting to the exchange for data about their consenting customers.
"The Verisk Telematics Data Exchange has the potential to transform how auto insurance is bought and sold, and we're excited that GM is the first auto manufacturer to sign up," says Jim Levendusky, vice president of telematics at Verisk Insurance Solutions. "For insurers, the availability of driving data from consenting customers can help spur innovative usage-based insurance programs, including the ability to price policies based on driver behavior. Consumers who opt into the program and demonstrate good driving habits may be rewarded with lower insurance premiums, reducing their vehicle ownership costs."
The Verisk Telematics Data Exchange can also benefit insurers that are already collecting telematics data and have launched UBI initiatives, according to Levendusky. And the exchange creates new opportunities for customers who choose to deepen their relationship with auto manufacturers.
"UBI comes with real costs," added Levendusky. "Our exchange lets insurers offer UBI without navigating many of the logistical challenges."
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Tower Selects EIS Group’s Insurance Platform to Drive Transformation
- NTUC Income Selects Majesco Distribution Management and Majesco Digital Solutions to Advance its Distribution Management Operation
- Emerson Reid Modernizes Its Business Processes With VUE Software
- Octo Telematics Powers CAA MyPace™ Pay-As-You-Go Program
- Announcing the Solartis Insure Microservice Hackathon
- DataCubes Completes Plug and Play Tech Accelerator Program
- Medical Mutual of Ohio Implements One Inc Digital Payments
- SUNZ Insurance in Production with Sapiens’ Workers’ Compensation CompSuite® Policy System
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA is pleased to present the 2014 Webinar Series. We have many topics for you to choose from and attendance is open to all ITA members. The webinar topics are current and exciting — ranging from predictive analytics to telematics and will focus on the direction insurance carriers need to follow for the future. All webinars are presented by insurance IT professionals along with some of the leading analysts and consultants in the field. There is no cost to attend an ITA webinar. For more information and to register for the webinar, click the “title” of the webinar below.
BLOGS AND COLUMNS
It has become a common refrain over the past few years to view the practice of enterprise architecture (EA) as something that time has passed by, much... READ MORE
One important trend in society over the past decade is our increasing ability to create and consume a seemingly unlimited amount of digital content... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE
Fraud detection has always been and will continue to be a critical component of claims management. Learning the lessons from current claims Straight... READ MORE
- Vendor Views