Vodafone & Towers Watson Combine Forces for Insurance Telematics Services

UK-based AIG Europe as first customer

Vodafone & Towers Watson Combine Forces for Insurance Telematics Services
Wireless operator Vodafone signed an agreement with US business risk management services firm Towers Watson to develop telematics/usage-based insurance offerings for motor insurance companies operating outside of North America.

“The combination of Vodafone Vehicle Connect, the company’s telematics proposition, and Towers Watson’s ‘DriveAbility’ programme, will accelerate the pace at which insurers can get new services to market, and at a competitive cost,“ said the partners in a press release.

The service will combine the driving data with external information, such as traffic patterns and weather data, to enhance the accuracy and value of the vehicle score.

“Launching and maintaining successful telematics motor insurance products involves more than simply sourcing a device and considering basic driving events,” explains Duncan Anderson, global head of pricing and product management at Towers Watson. “From our experience (...) we know that analysing granular data allows a much deeper understanding of the context of driving behaviours, which gives a much greater understanding of the likelihood of claims. Indeed we have found that our scores can differentiate loss ratio by over a factor of 10 from the best 10% of business to the worst 10%.”

The companies think that the majority of solutions are expected to be made available to customers on a self-install basis (most likely OBDII dongles), including options for insurers to offer “try before you buy“ applications on smartphones.

Wednesday, March 6th 2013

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