GPS Tracking, Science and Insurance
I was really happy to read this release a few days ago highlighting yet another success of my old friends at Geotab. I used to be a dealer of Geotab products and I am still convinced they offer some of the best business-oriented GPS solutions in the world.
ISO has announced that it will equip more than 600 ISO company vehicles with telematics devices to monitor and record data about driving behavior. Information will include Global Positioning System (GPS) and On-Board Diagnostic (OBD-II) data for vehicle information and 3-axis accelerometer data for driving maneuvers. Telematics data can provide predictive value to insurers through various methods. The project will help ISO, through its Applied Informatix until, to assess the methods needed to leverage this new source of data for analytics to predict loss and streamline rating, underwriting, and claims workflows.
According to Steven C. Craig, general manager of Applied Informatix and A-PLUS, “ISO is undertaking this effort as part of its pioneering study to assess the predictability of telematics data for rating, underwriting, and claims purposes. Using the ISO fleet as a source of telematics data will provide our analytics staff an invaluable test bed for product development and telematics data troubleshooting.”
ISO created the Applied Informatix business unit to gather and analyze telematics data from devices installed in private passenger and commercial vehicles. The unit also plans to mitigate the obstacles currently experienced by insurers who wish to collect and use driving behavior data to create differentiated auto insurance products.
“By equipping the ISO fleet, we will gain firsthand knowledge of all aspects of such a program from installation, activation, data collection, and processing to linkage of claims and policy data,” said Craig.
ISO is working with Geotab, Inc., to equip the ISO fleet with Geotab’s small but powerful plug-and-play GO5 telematics device. GO5 offers state-of-the-art technology and Geotab’s patented tracking algorithm, which accurately recreates vehicle trips and incidents.
In addition to contributing to the ongoing Applied Informatix telematics study, ISO expects to reap other benefits, according to Craig. “We want to use the technology to help our risk management program increase fleet safety and efficiency, thereby reducing costs while supporting ISO’s green initiatives.”
To support the telematics initiative in the insurance industry, ISO has joined the Connected Vehicle Trade Association (CVTA) as a board member. CVTA is a nonprofit business league established to facilitate the interaction and advance the interests of the entities involved in the vehicle communication environment….
I’ve been in this GPS Tracking for Business market space for some years now, and I’ve always been conscious that one of the big players in the field has been lagging behind … the transportation insurance segment of the market.
This is a very important first step in getting the insurance industry “on the same page” as many business owners and fleet managers already read from.
You can’t manage what you can’t measure”, and likewise, you can’t give the best price(and reap the most profit) from insurance programs unless you really know who and what you are writing coverage for.