Arity, a mobility data and analytics company
Insurance marketers, using Transparent.y, which was acquired by Allstate in 2018, can target shoppers based on their driving risk scores and optimize the bid based on the value of a consumer.
Fred Dimesa, head of advertising and data product launch at Arity, said the company is using telematics data to create a fairer way to price insurance.
“Your insurance is based on a variety of factors, and credit is typically a big factor,” Dimesa said, adding that a driving score can show insurers the true risk of an individual.
“If you know how people drive on the upfront before you spend a dime on marketing to them, you can find people that have a good driving score and you can reward them for that safe driving,” he said.
Patrick Cross, the co-founder of Transparent.ly, said the addition of driving behavior data gives an advertiser a comprehensive look at the value of a consumer.
“It changes the economics,” Cross said, adding that the telematics data allows for more information about how people are driving as it's happening and gives insurers a chance to win valuable customers who are less risky on the road.
“It’s a feedback loop,” he said, explaining that it empowers consumers to control their rates as knowing that your driving behavior impacts your score can change your driving behaviors.
“Overall it’s a good incentive for consumers and insurance companies,” Cross said.
Arity collects the data from smartphones but consumers can opt-in or opt-out of the collection.
The vision for Arity was for consumers to have the opportunity to affect their insurance premiums but it’s a choice and the data is in the consumer’s control, Dimesa said. Consumers have the right to say, ‘I want to use the rating variable rather than traditional variables like age, gender and credit score. I can’t help how old I am.’
“This fundamentally changes the way consumers think about insurance companies and it gives consumers control of their rates,” Dimesa said.
