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When it comes to consumer’s data privacy, no industry gets a free pass, let alone auto insurers with their core product concept revolving around trust and assurance. However, as connectivity and telematics data comes into play with usage-based insurance (UBI), there has been a slight deviation in the industry. While there is a big demand for UBI largely, some discomfort has been observed among the consumers regarding the sharing of their driving data.
A study by The Zebra found up to 60% Gen Z individuals feel some level of discomfort with sharing location data, while a report from GWI.com suggests 62% respondents worry about how their personal data is being used by insurance companies.
With a great many insurance institutes inclined to offer the UBI model, and a similar number looking to enter the space anew, CerebrumX takes the initiative to ease the privacy agenda for auto insurers, so that they can resume to offering policyholders the best protection possible.
Reinvent UBI Customer Privacy with Telematics Data & Analytics
Connected vehicle data is very well one of the best solutions to empower auto insurers in enabling their UBI efforts, while saving drivers time and money and in the process innovate advanced insurance products. Data collected from connected vehicles yields greater value in understanding the mobility trends while deep diving on the driving behavior of the individual in question, to offer customized insurance plans.
The policy for a driver who is known to be rash would correspondingly reflect a surge to account for the risky behavior, while that for one who puts on lesser miles per year would stay relatively lower, and vice versa. Popularly known as Pay How You Go (PHYG) or Pay As You Go (PAYG) schemes within the UBI model, this comprehensive approach to auto insurance contributes towards a sustainable future of vehicles, with a focus on driver safety.
Vehicle analytics and data could help insurers:
- Transparently demonstrate the true basis for data collection, processing and implementation in the form of personalized plans.
- Strictly avert use of vehicle data for activities that do not directly impact UBI efforts, such unnecessarily monitoring of location, speed and other parameters.
- Collect driver data only after recording relevant consent, and cease if revoked, in contrast to aftermarket devices that start collecting data from the point of inception.
- Review historical data to offer coverage based on driving skills, behavior or load, enhance road safety with accident assistance and streamline claim processes.
- Monitor only those data sets that actually impact the UBI model, such as vehicle status, telematics, driver behavior and more, and restrict from tracking protected user data, such as race or ethnicity or anything that disregards UBI.
- Eliminate the use of non-driving factors in pricing, such as occupation and credit-score. Instead, bring in transparency over the entire data transfer process to optimize policies and costs.
Start Your UBI Journey With CerebrumX
Leverage the power of connected vehicle data with CerebrumX and its AI-driven Augmented Deep Learning Platform (ADLP) to unlock deep and contextual insights to support UBI initiatives.
We understand the importance of consumer’s data privacy and security in underlying data processes, which is why we support our insurance partners in their security efforts through our white-label consent management platform, CerebrumX Secure Consent.
CerebrumX Secure Consent – To create a healthy environment for driver’s data security and privacy.
Always inform users about the services that may approach for their car data, and the type of data that they’ll gather for those services, through a platform that’s:
- Flexible and supports fast integration through APIs
- Simple-to-use interface to manage data access
- Globally compliant with GD PR and CC PA laws
Proffer the complete control over sharing of data to drivers, with:
- Ability to grant, revoke or edit consent for particular services, at any time.
- View data shared with service providers.
- Get timely notifications on consent revocation.
CerebrumX Secure Consent simplifies collection of vehicle data through a networked architecture and puts drivers first, by enabling consented data transfer and safeguarding collected data for enhanced consumer privacy.
For more information regarding connected vehicle data and the evolving ecosystem around it, Contact us or reach out to our experts.
