While an increase in smartphone ownership has introduced problems in auto insurance, advancements in telematics technology are revolutionizing auto insurance and its role in the mobile world today. This five-part blog series addresses the problems facing auto insurance and the Game Changers solving them.


Problem: How do you accurately assess driving risk while achieving customer satisfaction?
Even the best smartphone telematics program can fail due to bad technology. Inaccurate trip scores lose customer trust, while battery inefficiency causes customer frustration. This all leads to poor app store reviews and a drop off in program participation, preventing desired business results.

Used separately or in combination with Bluetooth IoT devices like the DriveWell Tag, mobile sensing technology has vastly improved over the years, allowing connected insurance programs to prevent such failures. As such, telematics-based insurance programs can exceed customer expectations by not only providing UBI insurance policies, but also by increasing customer service, user experience, and thus retention.

AI-Powered Data Processing at Scale 
Built on billions of miles of driving data, CMT’s mobile sensing and artificial intelligence technology collects and transforms sensor data and produces actionable insights for the end user and insurer.

After it detects a trip has started, CMT expertly balances sensor data collection with battery efficiency, ensuring an accurate and usable experience for the user. Immediately following a trip, best-in-class algorithms provide a precise trip location, transportation type, driver/passenger classification and risky events. Additionally, accuracy is maintained across operating systems and phone models, so each user has a consistent experience.

Technology with best-in-class algorithms is the difference between “close enough” sensor data and precisely collecting and transforming sensor data – a key component to building driver trust and satisfaction.

Introducing IoT
Programs that only use a smartphone fulfill many use cases, while others – like scoring trips only in the insured vehicle – require an IoT component. However, most telematics hardware technology is plugged in or connected to the vehicle, creating security concerns for users, or creating a higher barrier to entry. With the DriveWell Tag, no plug-in is required, ensuring privacy while maintaining the ability to identify the vehicle.

The Tag has virtually no onboarding process. Its set up is as simple as peeling and sticking the device to the windscreen. No maintenance is required on behalf of the user for about four years, the average lifespan of the battery.

Game Changer: Artificial intelligence and IoT have taken the ubiquity of the smartphone and turned it from a problem into a solution. Now that connected insurance programs can offer features like measuring smartphone distraction and incentivizing good driving behavior with rewards, we have all the tools we need to level up the auto insurance industry.

Next Game Changer: Distraction can be measured and quantified