Monetising data from ADAS, eCall and vehicle technology stacks all the rage.
Daimler's Mercedes-Benz and LexisNexis join the list of partnerships seeking to leverage the value of data to deliver personalised insurance cover and mobility services.
LexisNexis Risk Solutions has teamed up with major original equipment manufacturer (OEM) Mercedes-Benz Connectivity Services GmbH for a personalised insurance proposition.
This will see Mercedes-Benz customers in Europe benefit from personalised insurance products and programmes based on vehicles’ advanced driver assistance systems (ADAS).
"For example, when a customer requests a quote for insurance and agrees to the processing of equipment-related information, LexisNexis Risk Solutions can check for the presence of ADAS features related to that specific vehicle using an applied processing interface (API) which is provided by Mercedes-Benz Connectivity Services GmbH.
This insight can then be fed into the insurance market’s quoting systems. Both organisations have data protection processes in place to protect the customer’s privacy. "
Insurance Times 18th May, 2021
In the US Verisk are on a similar journey.
"Driving behavior data generated by connected cars can flip this model on its head. The Verisk Data ExchangeTM collects and normalizes trip-level telematics data from millions of consenting drivers on a rolling basis. These vehicles span multiple leading U.S. automakers, including the recently announced integration with Hyundai . When one of these drivers begins a UBI application, Verisk can deliver weeks or months of historical driving behavior data to enable the delivery of an accurate, personalized driving discount at point of quote in seconds—no observation period and no hardware or software to install, and no premium leakage from a preliminary participation discount."
Turn connected cars into a new marketing channel for growth and profitability Carrier Management April 23rd 2021
Tesla is probably the most advanced in leveraging the data in its own vehicles to provide granular underwriting and personalised cover for its owners. More than that its Autopilot software has more driving mileage data and more ADAS functionality than any one manufacturer. This can be leveraged to design safer and better cars, reduce repair costs, integrate with repair networks. If ever a vehicle suffering collision damage will book itself into a specific repairer, initiate 3D printing of replacement parts, organise and deliver a replacement vehicle until organising the rern of the repaired vehicle then you think Tesla will be first there.
But all auto OEMs are looking to provide the lifecycle package at point of sale including insurance and the LexisNexis and Verisk initiatives are steps on that journey. I discussed the cooperation and potential competition between auto OEMs and Insurers in -
In reality its not one or the other but a mix of both with a probably top quintile of partnerships coming out winners.
That's until autonomous vehicles eventually become commonplace by which time insurance cover will move from the driver (Europe) and vehicle (USA) to product liability bundled in the price of vehicle manufacturing. UBI will have moved to mobility as a service and insurance bundled more parametrised smart contracts in a blockchain powered ecosystem.
The LexisNexis, Verisk and other initiatives are steps on an innovation curve as are the parallel innovation in virtual claims and repairs with these and other service providers like Mitchell, Tractable, Solero and many others, e.g. see Mitchell Teams With Mazda North American Operations to Launch U.S. Collision Repair Network
The connected vehicle/technology and insurer's technology stacks and all these other components of a complete lifecycle mobility services are all part of the exciting innovation which will inevitably disrupt many complacent incumbents.
Sherezad Rehmann, senior director of European connected car at LexisNexis Risk Solutions, said: “Mercedes-Benz Connectivity Services GmbH understands the huge potential vehicle-centric data holds for more personalised insurance cover, safer driving and to incentivise investment in ADAS. “We know ADAS can reduce claims frequency and, as we gather more claims data from the insurance market, that insight can help with pricing and driving further investment in ADAS development.