Global demand for use-based insurance grows thanks to the big data, IoT and hardware components (such as black boxes and sensors) that allow it to be collected.
The company Octo Telematics, which has already been a pioneer of insurtech, specialized in providing telematic services and data analysis solutions to car insurance industry, is again a pioneer of global demand for Usage-Based Insurances. According to the figures, it will reach 93 million policies by 2020 and for this reason Octo Telematics has developed the Next Generation Platform (Ngp), the result of an investment in research and development of over $ 40 million.
The platform provides easy and “seamless” integration via the Application Platform Interface (API), as well as a fully modular insurance telematic framework offering flexibility through the selection of mix-and-match services. Platform development as IoT ecosystem offers innovators a tool to meet the growing global demand for Usage-Based Insurance (UBI), which is expected to reach 93 million policies by 2020.
“The Next Generation Platform will help us meet the growing demand of our current insurance partners and will make quicker and more efficient the acquisition of new customers, thus allowing integration opportunities for everyone from start-ups to major multinational insurance companies.”, says Fabio Sbianchi, CEO of Octo Telematics, followed by the words of Gianfranco Giannella, Chief Operating Officer of the company who led the development of Ngp: “We’ve melted flexibility and openness of a horizontal context such as the IoT with the effectiveness of vertical-business applications, thus delivering the best of both “worlds” to current and potential partners, democratizing access to important analytical data that will drive innovation in services for insurance industry”.
The added value of the Ngp platform, based on the latest generation telematics software and the provider’s IoT hub, is in the ability to capture data from any sensor, examine them and provide analytics and real-time information. For users, this means experiencing a complete and innovative digital experience of the Internet of Things, consisting of basic telematic services such as driving scores and accident reconstruction, and new features able to improve risk analysis for insurance companies, automotive companies and rental services.
Platform benefits are already clear and will be even more when the driverless car will become “the one” down the street. To date, insurers have used telematics to provide services combined with UBI policies; NGP, will allow greater integration of data coming directly from connected cars and will produce a growing number of third-party services such as tolls and traffic information. Technology is and will be essential in analyzing the incidents needed to better assess responsibilities, driver premiums, crucial to the process of reducing insurance fraud and essential for simplifying the claims management process. The platform is already operational and the first feedback received by Octo Telematics suggests a future of the insurance market more and more steeped in the IoT.