Vehicle insurance underwriting is really about driver habits of the policy holder.
GM to leverage data generated by cars to re-establish its auto-insurance business.
This will provide rating data for car-insurance based remote tracking of drivers’ behavior.
GM or Onstar to then use this driver behavior data to set insurance rates.
Can even calculate amount of times safety features are deployed by driver.
More new cars are being sold with built-in internet connections.
Car companies are branching into services onboard computers & sensors.
Usage Based Insurance uses connected-car data to gain better insurance rates.
Ultimately GM will determine such other data such as tire inflation & vehicle speeds.
Including improvement of stopping distances to reduce the risk of crashes.
GM is using its OnStar connected-car service to gain vehicle data from sold cars..
Data is then used to determine the cost or rate structure of a given policy.
Vehicle owner must sign up agree to have their driving habits tracked.
Tracking includes speed limit, avoiding sudden stops & other good-driving behavior.
Services from navigation to parking are also available on drivers’ smartphones.
GM to use collected data to gain more-precise rating info than insurance companies.
“Who knows more about your vehicle than the people who manufactured it?” — Andrew Rose, president of GM’s OnStar Insurance Services.
“Car companies are gravitating to services that rely on specific information from the vehicle that third-party app developers aren’t able to easily replicate.”
— Brian Rhodes, research &analysis manager for connected cars at IHS Markit.
“The auto maker has more data at its fingertips that can tie into a unique score and provide more value for insurance purposes,”
Number of auto-insurance policies in North America using digitally-logged data from the car expected to grow to nearly 50 M in 2023.
Was 10.6 million at the end of 2018,
“GM to Sell Car Insurance, Using Data on Your Driving to Set Prices.”- https://www.wsj.com/articles/gm-wants-to-not-only-sell-cars-but-insure-them-too-11605708000
People: WSJ Author of Source Article : Mike Colias, Mike.Colias@wsj.com