ISO, a subsidiary of Verisk Analytics, will equip more than 600 company vehicles with telematics devices to monitor and record data about driving behavior. ISO says the information will include Global Positioning System (GPS) and On-Board Diagnostic (OBD-II) data for vehicle information and three-axis accelerometer data for driving maneuvers.
The project is designed to help ISO, through its Applied Informatix unit, to assess the methods needed to leverage this new source of data for analytics to predict loss and streamline rating, underwriting and claims workflows.
“ISO is undertaking this effort as part of its pioneering study to assess the predictability of telematics data for rating, underwriting and claims purposes,” says Steven Craig, GM of Applied Informatix and A-PLUS. “Using the ISO fleet as a source of telematics data will provide our analytics staff an invaluable test bed for product development and telematics data troubleshooting.”
ISO says it created the Applied Informatix business unit to gather and analyze telematics data from devices installed in private passenger and commercial vehicles, as well as to mitigate obstacles currently experienced by insurers who wish to collect and use driving behavior data to create differentiated auto insurance products.
“By equipping the ISO fleet, we will gain firsthand knowledge of all aspects of such a program from installation, activation, data collection, and processing to linkage of claims and policy data,” says Craig.
Geotab Inc. is equipping the ISO fleet with Geotab’s plug-and-play GO5 telematics device, which offers state-of-the-art technology and a tracking algorithm, says ISO.
In addition to contributing to the ongoing Applied Informatix telematics study, ISO expects to reap other benefits, according to Craig. “We want to use the technology to help our risk management program increase fleet safety and efficiency, thereby reducing costs while supporting ISO’s green initiatives,” he says.
ISO says the company joined the Connected Vehicle Trade Association, a nonprofit business league established to facilitate the interaction and advance the interests of the entities involved in the vehicle communication environment, as a board member to support the telematics initiative in the insurance industry.
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