Five years after the launch of LexisNexis Telematics Exchange, 42% of the U.S. auto insurance market is contracted or currently contracted for access, including five of the top 10 carriers based on market share, LexisNexis said. at Repairer Driven News.
The telematics exchange amassed data from more than 9 million connected cars, 252 billion miles traveled and the equivalent of 19.5 million years of driving exposure, the company said. He said more than 60% of the OEM market is now engaged and should be incorporated into the data available to insurers by the end of 2022.
LexisNexis describes the exchange as “a source-independent platform for telematics data on driving behavior and vehicle information that has the ability to bring together insurance companies with vehicle manufacturers (OEMs) and manufacturers. ‘other third-party telematics service providers to help improve the car ownership experience for their common consumer.
Like other service providers, LexisNexis is tapping into the explosion of vehicle connectivity. According to global technology watch company ABI Research, connectivity will be available in more than half of new vehicles sold in 2022, and more than 70% in 2028.
“The milestone for LexisNexis Telematics Exchange is the value it brings to contributing organizations that want to help reduce the total cost of vehicle ownership, and to insurers that leverage its solutions for better segmentation, better risk assessment and an overall consumer experience,” Adam Hudson, vice president and general manager, US Connected Car, LexisNexis Risk Solutions, said in a statement.
“Ultimately, the goal is to provide solutions that allow vehicle owners to have greater access to auto insurance products that are more personalized to their individual needs,” Hudson said.
The primary consumer benefit of telematics exchange, an unnamed company spokesperson told RDN, is participation in usage-based insurance (UBI) programs that tie their premiums to their behavior. driving. “Our 2021 U.S. consumer survey indicated that 71% of consumers are interested in using their driving and vehicle data for insurance discounts,” the spokesperson said.
OEMs will benefit from creating additional “touch points” with their customers to improve service, build brand loyalty and “capture additional value” from their telematics investments. According to ABI Research, consumer adoption of connected services is low, especially among lower-tier vehicles.
LexisNexis explained that consumers have the option of having their telematics data shared by OEMs or “other participating third-party telematics providers.” Once they agree, “this data can flow through the exchange where it is normalized and prepared for use in insurance telematics solutions,” the spokesperson said.
In the case of its Telematics OnDemand product, LexisNexis is considered a Consumer Reporting Agency (CRA) in the eyes of the Federal Trade Commission and is subject to certain requirements for managing consumer driving behavior information managed within Telematics Exchange, the company said.
Under the Fair Credit Reporting Act, 15 USC § 1681a(f), an CRA is defined as “any person who, for monetary charge, membership fee, or on a nonprofit cooperative basis, engages regularly, in any or in part, to the practice of assembling or evaluating consumer credit information or other consumer information for the purpose of providing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or providing consumer reports.
“With over 30 years of experience as a trusted custodian of consumer data, LexisNexis Risk Solutions helps ensure transparency, accuracy and privacy protection in accordance with regulations such as the Fair Credit Reporting Guidelines Act (FCRA),” the spokesperson said.
Telematics OnDemand, added since the launch of Telematics Exchange, is designed to provide standardized driving behavior data collected from OEMs, mobile apps and third-party services that participate in the exchange, LexisNexis said. It provides insurers with a single point of access to telematics data that can be used to assess risk at the time of submission, underwriting and renewal.
According to LexisNexis, Telematics OnDemand can be used in LexisNexis Auto Data Prefill, which is used by 89% of the insurance market to complete insurance quotes and applications. It is also integrated with LexisNexis Telematics IntelliMatch, which can help insurers use telematics data to acquire new leads.
Concerns about the need to protect the collection and privacy of consumer data in nearly every industry have led to legislative efforts such as the American Data Privacy and Protection Act (ADPPA), a bipartisan bill pending. review by Congress.
However, LexisNexis said it does not expect these bills to have any effect on its exchange, as it is already governed by consumer protection regulations.
“Because connected car data moves from vehicle to consumer and is portable to consenting consumers, it triggers the necessary consent measures associated with the Fair Credit Reporting Act (FCRA),” the company spokesperson said.
“We are committed to our Corporate Privacy Principles which require us to ‘act as a responsible steward of personal information.’ services and business practices. And we only collect and use personal information for legitimate business purposes,” the spokesperson said.
“We devote a tremendous amount of time and resources to protecting consumer privacy and personal information. The importance of protecting consumer privacy and personal information is one of our core beliefs. It has driven and will continue to drive improvements in the way we secure information, protect privacy and provide solutions that benefit our customers and their customers, communities and society as a whole.
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Featured Image: The LexisNexis Telematics Exchange has amassed data from more than 9 million connected cars, 252 billion miles traveled and the equivalent of 19.5 million years of driving exposure since its launch five years old. (FlashMovie/iStock)