Pay For What You Did- Not What Underwriters Predicted You Might Do. Vehicle Insurance Rates to Be Based on Driver Behavior From Machine Learning Apps


Dramatic change occurring in how vehicle insurance rates are set & marketed.
Vehicle insurance underwriting rates are now being based on driver behavior.
Driving behavior data is being gathered directly from insured vehicles.
Concerns about privacy going away as people get use to phone tracking apps.

Large Tech Firm, Cambridge Mobile Telematics, collects driver information.
Just bot rival, TrueMotion, making driver data use to grow in setting rates.
Age & credit scores no longer used to determine underwriting premiums.
Data gathering from autonomous vehicles sensors basis of risk assessment.
Potential premium overcharging based on racial discrimination being eliminated.

Telematics technology app in the vehicle gathers data used to score driver behaviors.
Combination of two companies provides telematics services to 21 auto insurers. (See above)
Insurers offer discount if can use & provide telematics gathered driving data.
Enables use of telematics, AI, & Machine Learning in claims processing.
App constructs crashes & provides what actually happened in accidents.


“The deal reflects a general belief in industry circles that “auto-insurance premium rates eventually will be based on how people drive,”
with a shrinking role for many traditional factors. “

“There are consumer privacy concerns with the use of telematics, but with every passing day,
we are carrying an app [Smartphone] tracking device in our pockets with location services turned on.”
— Brian Sullivan, founder and president of insurance-industry consulting firm Risk Information Inc

“Cambridge Mobile Buys Rival as Driver Data Tech Grows”-

Source article authored by Leslie Scism at

KEY PEOPLE: [Who Made This Happen] :
Cambridge Mobile co-founder and Chief Executive,  Bill Powers [CEO of the expanded entity].

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