Top 10 usage-based insurance stories of 2022

December 27, 2022 11:41 AM

Usage-based auto insurance is, in many ways, the Platonic ideal of the digitally transformed insurance industry. It marries tech with a legacy product to create something new and ostensibly better for policyholders and insurers alike. Following are the top 10 stories, by readers, that Digital Insurance produced on the subject in 2022. And, don't miss our feature package on the topic from this fall.

Allstate, John Hancock alliance and what it could mean for the future

By Kaitlyn Mattson

Security Operations Around The Venue For The G-7 Summit in U.K.

Anthony Devlin/Bloomberg

Jan. 31: Allstate and John Hancock recently announced a partnership to reward John Hancock Vitality members with points if the policyholder is also a safe driver with the Allstate Drivewise program. The alliance is the first of its kind and could be an indicator of where the insurance industry is going.

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Insurers perceive telematics app data as incomplete, LexisNexis

By Kaitlyn Mattson

LexisNexis Risk Solutions

April 21: Four out of five insurers use telematics data, typically from a smartphone app and nearly half of carriers manage their program through a homegrown app, according to a LexisNexis survey from 2021.

The survey also suggests that insurers are not satisfied with the telematics app data. About 60% of respondents said apps yield incomplete and limited data making insurers less confident in the data and its ability to assess risk. The 2022 LexisNexis U.S. Auto Insurance Trends Report includes 2021 survey results and highlights the advancement of telematics programs and various industry trends.

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Why State Farm spinout HiRoad refreshed its user experience

Nathan Golia

Aug. 9: About a year after its expansion into Arizona from Rhode Island, State Farm's UBI spinout HiRoad is refreshing its user experience.

The HiRoad mobile app is the "primary interface" through which policyholders interact with the company, says Steve Harris, VP of HiRoad. "We hadn't really updated it in a little bit, and so we took a pretty deep look at its design," he says.

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What’s ahead as insurers, automakers partner on connected cars

Kaitlyn Mattson

March 10: Partnerships between automakers and insurance carriers have existed for decades, but more recent deals offer customers insurance options at the point of sale using telematics data capabilities built into connected-car platforms.

Matthew Carrier, principal at Deloitte, says original-equipment manufacturers – or OEMs – have had insurance operations since the 1990s, but the recent surge in more partnerships was triggered by telematics. Almost all new cars have a connected system within the vehicle that collects data on how and where the vehicle is being driven.

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Travelers looks to expand UBI customer base with new mileage-based product

Nathan Golia

Travelers headquarters in Hartford, Conn.

Jan. 20: Travelers is piloting IntelliDrivePlus, a pay-as-you-drive usage-based auto insurance product, in Ohio, Nebraska, and Arkansas. The new iteration of the existing IntelliDrive product line comes at a time when auto insurance rates are expected to tick up while consumers are getting more comfortable with telematics overall.

"We did some research and [consumers] are interested in that additional control over how much they pay for their insurance and it's intuitive to them that telematics helps deliver that," says Karen Andrews, AVP of telematics and emerging auto at Travelers.

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Ford striking up insurtech partnerships

Michael Shashoua

Signage outside a Ford Motor Co. manufacturing plant in Sterling Heights, Mich., on Sunday, Aug. 28, 2022.

Matthew Hatcher/Bloomberg

Dec. 19: Automaker Ford has been busy in the insurance and insurtech space lately, striking up partnerships with insurtechs Wejo, CerebrumX and J.D. Power-owned ChromeData for telematics and vehicle data functions, plus its foray into commercial insurance with Pie Insurance.

"There's so much data coming off a vehicle that you can use that data to benefit your customer," said Kirby Harris, director of insurance operations at Ford Credit. "That gives us much more direct information to use to assess risk."

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Inflation increases auto telematics adoption, TransUnion

Grace Crane

May 24: Since the end of the last quarter of 2021, consumer use of auto telematics has increased by 33% as a result of economic inflation, according to the Personal Lines Insurance Shopping Report published by TransUnion. Compared to a previous survey from November 2021, a new survey of over 2,000 consumers conducted between February and March of 2022 discovered that the percentage of those who received an offer of auto telematics increased from 32% to 40%.

The survey also found an increase in customers that chose to adopt a telematics policy, with a rise from 49% to 65% – suggesting that some consumers are gradually overcoming fears of surveillance in hopes of reducing premiums. "The industry is kind of ripe for this," says Michelle Jackson, senior director of TransUnion's personal property and casualty insurance business.

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Hagerty gets nimble, launches Digital Labs initiative

Michael Shashoua

April 28: Digital Labs, a new initiative from Hagerty, Inc., bridges two worlds – marketing strategy and product development – to roll out ventures like its mileage-based auto insurance pilot and more.

To verify mileage for the company's insurance policies, written to cover classic and collectible cars, Hagerty had been using a platform that wasn't as capable of adding more extensive data, according to Kelly Smith, the company's chief strategy officer. Digital Labs developed a Mileage Verification app that started out by collecting policyholders' photos of odometer readings at the beginning and end of each policy term.

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USAA launches crash detection tech with SafePilot app

Grace Crane

Aug. 23: USAA announced the introduction of an auto crash detection technology, implemented into its SafePilot app, to detect possible accidents and assist drivers in case of a collision. As one of the first auto insurance carriers to do so, USAA launches the innovative technology to accelerate the claims process and simplify the customer's experience in handling an auto accident.

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Nationwide teams up with CMT on driving notifications

Grace Crane

June 24: Nationwide has partnered with Cambridge Mobile Telematics (CMT), a telematics service provider, to implement the new DriveWell Messaging platform into Nationwide's telematics products. DriveWell Messaging, an application developed by CMT, provides automated customer engagement through SMS and push notifications to improve driver retention and, ultimately, roadway safety.

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