Driveway Software and Pinnacle Actuarial Resources have teamed up to offer a coordinated usage-based insurance product that includes driver behavior scoring. Auto insurers now can buy Driveway’s technology backed by Pinnacle’s rating, actuarial and regulatory guidance and can choose technology, consulting and scoring individually, or as a coordinated package.
“Insurers know they need to break into usage-based insurance but some are unsure about the best way to approach filings, rating and product management,” says Igor Katsman, CTO of Driveway Software. “Now, with our technology and Pinnacle’s guidance, insurers can control their exposures and launch a UBI program that will deliver a more accurate price to the consumer with a better loss result for the carrier. Best of all, they can hit the ground running because Pinnacle already knows how to work with our technology and data.”
Driveway Software’s smartphone app + cloud-based platform is intended to minimize the costs and inefficiencies of programs based on onboard diagnostic devices, the company said. The Driveway products track driver behavior, such as time of day, garaging location, braking, cornering, speeding and mileage, using a smartphone app. Data then is transmitted from the app to a secure cloud, where a proprietary analytical platform processes the data of each individual risk component to derive a scored result for each risk element, as well as an overall safety score for each trip captured, Driveway said.
More than 200,000 drivers have downloaded and used the app, giving Driveway and Pinnacle the opportunity to collect and analyze more than 500 million miles of driving data.
“Applying Pinnacle’s analytics capabilities to half a billion miles of driving data provides insurers with a credible basis to incorporate driver behavior scores into their rating plans,” said Roosevelt C. Mosely Jr., Pinnacle’s principal and consulting actuary. “The scoring is easily customizable, allowing companies to focus only on the behavior elements of interest to them.”
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