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The role of the Internet of Things and geospatial in Usage Based Insurance

The era of smart insurance has arrived, and it’s only going to get smarter. Insurance models based driving habits or driven mileage exist today, but these models will only become more sophisticated with time. This has and will continue to create a growing pool of safer drivers who are aware that their behaviour on the roads directly impacts upon their insurance premiums. These changes to drivers’ habits will create a positive ripple effect in society, reducing high speed driving and therefore vehicle-related injuries and air and noise pollution.

The Internet of Things (IoT) allows insurers the chance to obtain and process a wide variety of data on a given vehicle or driver in order to help them better understand the insurance risk, risk profile and mitigate accordingly. That is only the tip of the data iceberg however, as far more can be gleaned from this data if your company knows what to do.

allmapdata from CACI are specialists in mining data to provide geographical and geospatial insight for businesses across multiple sectors, and our expertise in machine 2 machine (m2m) data stretches back to the mid-1990s. Our products and services are available worldwide and can be utilised via on-premise, SaaS or Cloud installations.

Below are some examples of how the Usage Based Insurance (UBI) data via the Internet of Things (IoT) can help on-develop products and solutions for the sector.

Extracting the Value from Telematics
From a geographic perspective the telematics data lake of GPS data from vehicles tagged with time and date can provide a wealth of insight and allow the creation of new datasets that can be monetised or used elsewhere within your business for spin-off products and services. This requires insurers and telematics providers to go beyond the simplistic creation of locations statements (ie. street, town, region, country and postal area data) derived from the GPS co-ordinates through the process of reverse geocoding. The derivation of Hyper location and context through enhanced geographic datasets will deliver this. The telematics solution and data can also be utilised and built into claims systems and allow you to develop advanced mobility products.

Advanced Driver Assistance Systems
Understand how the next wave of Advanced Driver Assistance Systems (ADAS) will help the driver in the driving process, including Intelligent Speed Adaptation (ISA) which will reduce the number of claims and claims frequency thus affecting price models currently offered by insurers. Allmapdata supply ADAS data in a wide range of geographic formats for use outside of the vehicle for simulation modelling and testing. This data can be further enhanced and supplemented with other bespoke third party data provided by allmapdata and/or sourced by yourselves.

Intelligent Insurance for Evolving Mobility
Utilise telematics to innovate as new mobility models based upon a host of inputs such as congestion, weather, temperature, geographic location, time of day or night. We are also seeing a sustained shift in car ownership by the urban population as well as Millennials, GenY and GenZ which will lead to new insurance services. In fact, the aspiration to own a car or other type of vehicle which has been ingrained into us from generations is on the decline. Will children born today own a car in the future or use a transportation service on an ‘as required basis’ using a pay & play model be that in a driving or self-driving vehicle?

Harnessing the Internet of Things (IoT)
Build a broad picture of the driver, by utilising historic route and locational analysis to understand trends by day of week, season and the outliers. This would be supplemented by other vehicle data available through Original Equipment Manufacturers (OEMs) and other telematics channels relating to servicing, maintenance, legal as well as other real-time influences such as weather, traffic etc.

Autonomous Car Developments
Identify how the broad spectrum of Advanced Driver Assistance Systems (ADAS) within autonomous vehicles will affect claims.

There will be a time when insurers will need to move beyond pricing offers to drive adoption of UBI as the uptake rate plateaus. Thus the need to develop a set or suites of value-added services will be required that will seamlessly integrate into the lives of customers. This could include commercial partnerships with retailers, brands and consortiums offering discounts for using their services or products.

It’s the old adage of ‘stickiness’: reduce the need for people to look elsewhere for certain products and services if they can obtain directly through your services. This could, from a driver based perspective include discounts at carparks, incentives to use out-of-town retail stores that the driver is likely to pass on route or a free cup of coffee when they fill up with fuel from a brand of service station.

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