With the plethora of information used in providing motor insurance, a central platform of driving and connected car data has been introduced in Europe – ensuring that providers and automotive OEMs (original equipment manufacturers) are on the same page regardless of where the data comes from.
Providing a consistent view of risk and driver scores, the LexisNexis Telematics Exchange will allow access to both insurers and OEMs, in part helping to boost adoption of usage-based insurance (UBI). The platform will include data collected directly from OEMs, aside from the established aftermarket devices and third-party information.
“It means that for the first time, insurers and OEMs will be able to cost-effectively access the whole of the insurance market at point of quote, while still enabling them to run their existing one-to-one UBI programmes,” explained LexisNexis.
For telematics and OEM director Paul Stacy, the need to bring confidence and consistency to scoring becomes more urgent amid UBI growth.
“There has been an explosion in devices and technology to collect driving and car data – and an even bigger explosion in the data coming from these sources,” noted Stacy. “Both insurers and OEMs needed a way to share data and to achieve a consistent view of risk, regardless of the data collection method used – it could be a connected car, a black box, or a 12V aftermarket device.”
Rutger Van Der Wall, vice president of global products, insurance at LexisNexis, commented: “The connected car will become the foundation for automotive insurance products but the cost for all OEMs to integrate with all the insurers is a multi-billion euro industry-wide problem.”
“To achieve a similar outcome as the LexisNexis Telematics Exchange, over 40 vehicle brands from circa 20 OEMs would need to be connected with over 1,000 European insurers and brokers – some 20,000 connections,” added Van Der Wall, who highlighted LexisNexis’s undertaking to pre-build the service.
In addition, LexisNexis is creating a Pan-European Insurance Panel. The firm said six of the world’s largest providers have confirmed interest in joining.
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