Evolving technologies and data revolution in the auto sector have always sought to make the lives of consumers convenient and hassle-free. One such solution that challenges the concept of a flat rate for auto insurance, irrespective of how consumers drive, is usage-based insurance, that puts the focus on personalized offerings. In an attempt to assist policyholders ration their car insurance expenses, especially during the COVID-19 pandemic, UBI gained symbolic recognition.
The industry, however, saw suppressed energy in the number of solutions available to end-users around UBI. A study from The Zebra suggests 40% of US drivers are unaware of the core principles behind UBI, but as much as 62% believe that pricing insurance based on how they drive is fair, suggesting positive inclination.
Transition From Conventional Auto Insurance
While there is a significant demand for the model, the industry’s opinion on the restricted acceptance of UBI could be due to an underdeveloped ecosystem and technology infrastructure. Newcomers in the auto insurance industry and conventional players looking to adopt the UBI model often face issues, like:
Reluctance in investing in the prerequisite infrastructure, both in terms of technology as well as skilled talent, apart from the cost of installing telematics devices in customers’ vehicles, which add to high initial expenses.
Adding to the technology-centric approach, the UBI model further requires insurance companies to appropriately monitor, capture and transfer device-sourced data, and storing it with optimum privacy to run analytics, which costs money and efforts, risking the overall profitability.
Once insurers manage to cope with the challenges and enter the UBI game, chances are they’ll have a hard time staying on par with the right quantity and quality of data, without compromising the bottom line. What’s more, the analysis of such limited data will yield less benefit to both the driver and the insurer.
Value-Driven Collaboration to Enrich Your Business Solutions
CerebrumX offers a remarkable solution to the challenges faced by auto insurers looking to adopt the UBI model by utilizing the power behind connected vehicle data, through its proprietary and industry’s first AI-driven Augmented Deep Learning Platform (ADLP). This data, collected form millions of vehicles over innumerable trips, helps organizations better understand mobility trends, while simultaneously planning, underwriting and rolling-out comprehensive usage-based insurance plans.
Vehicle Sourced Mobility Data over Aftermarket Solutions
A crucial aspect of connected vehicles and telematics data is that it allows insurance providers to create personalized offers and stronger client relationships. For instance, with data expressing a customer’s driver behavior, insurers can either offer discounts or hike up the insurance premium, so that the policyholder can reflect and improve the driving skills. Auto insurers can then lead to offer interactive models, such as PAYD or PHYD, which not only enhance driver safety but also contribute to a sustainable future.
Connected vehicle data brings:
- Accuracy, which mobile-based apps or OBD dongles can’t match
- Detailed analysis with historical data to offer tailored plans
- Cost-effective solutions, to manage a large fleet of vehicles
- Inference, ready-to-use data models and insights
Why Insurers Choose CerebrumX?
With CerebrumX, auto insurers safeguard their revenue-generating activities and focus on bringing convenience to the policyholder, through a platform that supports:
Data API Hub
Do away with the need to invest in advanced technologies and hefty infrastructure. Streamline your data operations with access verticalized APIs for effortless, single-point source for all your data needs.
Flexible solutions that match the dynamic nature of your data demands to support easy cloud integration for the transfer and storage of connected data, and smart visualizations.
Augmented with contextual information and cleansed through our standardization processes, get access to more than just raw data and instead AI-powered insights to create efficient solutions.
Gain access to both real-time and historical data, carefully analysed over 250+ attributes and normalized as per industry standards to charm end-users.
Consent Management Platform
Give the control over the sharing of vehicle data to the drivers, in compliance with global GD PR and CC PA laws, with our white label app CerebrumX Secure Consent for operational transparency.