In the first week of the year, my colleague, John Kramer (Vice President of North American Operations at The Floow) and I attended the TU Consumer Telematics Show in Las Vegas. This industry event brought together a large number of OEM’s and insurance companies to discuss subjects including the increased use of sensors and data in the automotive industry.
The likes of BMW, Volvo, Liberty Mutual Insurance, Traveler’s, Paccar and Jaguar Land Rover attended and spoke to over 500 delegates from around the world. Speaker slots covered topics including monetization of the connected car, security and privacy of “always on” vehicles, using blockchain within the automotive space, and the latest trends and innovations in autonomous vehicles.
With decision makers from a number of big name brands in attendance, there were plenty of opportunities to speak with key industry leaders to get their take on the future of mobility from connected cars to the wealth of data now available to companies and consumers alike.
A key issue I noticed was how many companies are still trying to work out their approach to the technological advancements being made in this sector. A lack of consensus on how to capitalize on these innovations is leading to duplicated efforts which can prove to be timely and costly for many businesses.
As telematics becomes increasingly commonplace for insurers and OEM’s, it is vital that they include this capability in their products as they will be looking for innovative ways to stand out from the competition.
At The Floow, we’ve created a portfolio of capabilities which collect and analyze journey data, understand human behavior and what represents risk, and to use that knowledge to build effective programs by working with individuals to encourage sustainable improvements in their habits behind the wheel.
Scoring is a key part of this process; our scoring approach uses a combination of advanced data analytics, machine learning, actuarial science, and behavioral psychology. Proper use of the latest technologies along with a solid understanding of human behavior behind the wheel allows us to predict risk with significant precision, much more than the standard models today.
For insurers, in particular, we focus on ensuring that the data we collect helps advance the way they deal with risk. Our world-class scoring platform pushes behavioral scores to match and surpass the traditional, proxy-based models which assess risk for an insurance policy, and is proven to deliver a more than 25% improvement. Once you have a detailed, empirical picture of what represents risk and how to measure it, you can begin to work on making driving safer for everyone.
A unique aspect of our business model that resonated with OEMs and insurers at the show is our approach to IP. We understand that building skills, experience, and ownership with collected telematics data is a strategic differentiator for our customers. That is why we partner with our customers to build that asset within their own organization and turn over ownership of the customized analytical models to them. This unique approach delivers three times the profitability per telematics customer versus the traditional proprietary models.
Another interesting trend in the automotive space is the desire to offer an improved customer experience through value added services beyond traditional infotainment. Many of our discussions revolved particularly around the next generation of services aimed at improving driver safety not with buzzers and annoying sounds, but through rewards and positive driver coaching. Over the last three years, The Floow’s rewards and driver coaching program has shown solid evidence that the worst scoring drivers, those who have the most accidents on the road, can and will improve significantly with the right incentives and personal ownership of their driving.
For The Floow, North America is a particularly interesting market as it is growing at a very fast pace. As a result, this year we’re focusing on bringing our unique capabilities to our existing customer base in the US to help positively change driver behaviour with our rewards and coaching services.
We will also be looking to work with new customers, specifically those based in the mid-market, where our soon to be released FloowDrive telematics solution – which is a robust, quick-to-deploy, white label platform – will be of particular benefit. Plus, we will continue to work with our OEM partners to make data cheaper and easier to access for all our insurance customers.
The next 12 months are going to be very exciting for all at The Floow, particularly for me and the rest of my colleagues based in Detroit. We believe that FloowDrive, which will be brought to market in Spring, will spur a larger adoption of our scoring services, telematics technology and our data-driven approach improving mobility for OEM’s, insurers and drivers alike.
One thing’s for sure; 2018 is going to be a big year!
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