How Ingenie reimagines insured driver behavior using TomTom data
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Usage-based insurance (UBI) is a type of car insurance that bases the cost of a policy on a driver’s safety habits. The adoption of UBI, providing driver feedback post-journey, is making roadways safer, reducing accidents and improving insurance rates. A decade ago, Ingenie had the vision to explore this model. They launched an Internet of Things (IoT) platform built on data science that provides feedback to consumers on their driving performance. Two of the key ingredients in their solution are location and speed data sourced by trusted partner TomTom.
The challenge: How do we get new drivers to listen?
Studies show, and insurers know, that people under 25 years of age tend to be involved in more car accidents, because they are still learning. Experienced drivers know that when the leaves fall and roads are wet, you need to slow down to avoid skidding, or that rounding a curve at an accelerated rate can lead to a disastrous outcome, and that speeding through a school zone is a problem waiting to happen.
Explaining these risky driving habits to a young adult may or may not be heard. But what if they were told, “You can’t drive because insurance premiums for your age group are too high.” Worse yet, “Because you were caught speeding, your insurance premiums have skyrocketed, and you can no longer drive.” Now you have their attention.
Current data-driven insurance pricing techniques are based on “proxies” of expected customer driving performance. This can be unfair and is not easily understood by customers. Actual driving behavior is a much more transparent and fair way to analyze the risk of driving. By offering customers their actual driving performance, they can better understand their insurance risk and make rational changes to improve their driving habits.
Equally, as the market has also focused on “pay how you drive” for experienced drivers, where customers understand instinctively the benefits of paying only for their individual risks, Ingenie has developed a reliable solution.
A new way of thinking about driver’s insurance
Insurance success is all about customer behavior management with the goal of reducing accidents and ultimately driving down claims costs. Ingenie first started because insurance wasn't affordable for new drivers. Insurers knew people under the age of 25 were involved in more accidents, so they charged more for insurance to cover the risk, or they wouldn’t offer coverage at all.
But what if you're a good driver? Ingenie thought it was time that insurers stopped judging people by their age and started using technology to solve the problem. Ingenie created a platform where data is collected from a black box, self-install device, connected car or app in the driver’s vehicle. This data is then analyzed by Ingenie’s algorithms which are built on a decade of high-resolution data, collection by Ingenie’s own in-house data science team. Output data is subsequently shared with the insurer. Then, that data is used to determine the driver’s insurance rate – the better the driver, the better the discount.
In time, other companies around the world noticed the success of Ingenie and the approach around behavioural change to improve road safety. Since then, Ingenie Business (the B2B2C technology arm of the group) has focused on refining the solution and selling its market-leading technology to other organizations who want to launch a connected insurance proposition across all age groups.
It’s all about better data
Ingenie has developed an IoT platform to track driver behavior. Driver performance data is monitored via a self-install device or app in the vehicle and sent to a back-office system for analytics. The Ingenie system works by comparing multiple metrics, one of which is actual driven speeds versus historical average speeds per road segment. About four years ago, realizing the importance of this location and speed data to their solution, Ingenie switched to the use of TomTom data to support their location technology needs.
TomTom maps are global in scope and power some of the most-used location apps. TomTom maps are also fresh – reflecting roads that change every day, including updated speed limits, new businesses, additional roads and renamed streets. To ensure our maps mirror a changing world, TomTom combines high-tech mapmaking that includes artificial intelligence (AI) and machine learning with community input. These maps also include speed limit data.
Since 2008, TomTom has been collecting anonymized GPS location data from its global providers and community. Using this massive volume of archived data, we’ve built a powerful historical traffic database – unparalleled in the industry – to analyze, predict and improve traffic.
The Ingenie platform leverages the scale, quality and freshness of TomTom maps and speed limit data, and the accuracy of TomTom historical speed data as the basis for their analytics.
Learn how TomTom’s location technology can address UBI mapping and traffic data needs.
A win-win solution, saving lives and reducing premiums
Since adopting the use of TomTom data in their back-office solution, Ingenie now has an improved view of the entire road network, speed data per road segment and the value inherent in a trusted partner. This single vendor, single point of contact, trusted partner approach has led to enriched customer satisfaction, improved driver behavior and enhanced road safety.
“Selim Cavanagh
CEO of Ingenie
Over time, the Ingenie system usage has expanded to benefit not only young drivers, but those of all ages. Users across the age spectrum are now realizing improved premium rates through safer driving habits. Some are even using it as a form of competition, seeing who can garner the best driving score. But whether it’s cost savings or competitions – all drivers stand to benefit from a safer experience behind the wheel.
The future of insurance telematics
The insurance telematics market is expected to grow over the next five years with more insurance solutions around the world using real-time data to provide more relevance to customers and improve insurer results. There won’t be a single proposition for all markets, but the Ingenie platform, leveraging TomTom location technology, is built to be flexible and allows providers to be highly targeted. The goal is to build a network of customers across multiple territories and many different groups, allowing Ingenie and TomTom to best demonstrate their range of capability.
Ultimately, all drivers stand to benefit from a cleaner, safer, congestion-free driving environment.
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