Vincent Pavero, director, products & innovation, iMetrik on moving from a single-device, single-platform UBI model to using multiple devices for gathering data and also multiple ways to display it.
In this video from Insurance Telematics Europe 2014, Vincent Pavero, director, products & innovation, iMetrik, speaks with TU’s Jan Stojaspal about how the usage-based insurance (UBI) model has moved from using a single device and a single platform to using multiple devices for gathering data, such as the smartphone and OBD2 dongle, and also multiple ways of displaying the data, depending on the target group.
This diversity enables UBI solution providers to offer dashboards for different “targets” in the market and to custom-tailor their solutions, because each segment needs a specific vocabulary and a specific user experience, he says.
For young drivers, for example, the experience should be focused on the smartphone because they are “big users” of that device, Pavero says. In addition, young drivers also need what he calls a “very living” communication. “You have to send notifications every day, because if you don’t, they will get bored very quickly,” he says.
This segmentation also applies to data gathering. Pavero says that with young drivers it is important to track overreactions at the wheel, whereas with senior drivers just the opposite is true. ”The data we’d collect would be more related to under-reaction,” he says. “It’s not about braking too hard; it’s about, oh they forgot to brake at the stop [sign].”
According to Pavero, UBI is still far from having found the “sweet spot” regarding the use of value-added services, though all players in the ecosystem agree that this is the key to the future success of insurance telematics.
The fact that UBI still remains an unproven revenue producer is also slowing its migration from niche to mass market product. “For insurers, telematics at the beginning is a financial burden, it’s only a cost,” Pavero says. Proving that UBI can create value is a slow process. As a result, insurance companies are very cautious, he explains, adding, “And they are right.”
Jan Stojaspal is the executive editor of Telematics Update.
For all the latest telematics trends, check out Advanced Automotive Safety USA 2014 on July 8-9 in Novi, Michigan, Insurance Telematics USA 2014 on Sept. 3-4 in Chicago, Telematics Japan 2014 in October in Tokyo, Telematics Munich 2014 on Nov. 10-11 in Munich, Germany, and The Open Mobile Summit on Nov. 10-11 in San Francisco.
For exclusive telematics business analysis and insight, check out TU’s reports: Insurance Telematics Report 2014, Connected Fleet Report 2014, The Automotive HMI Report 2013 and Telematics Connectivity Strategies Report 2013.
03 Sep 2014 - 04 Sep 2014, Radisson Aqua Blu, Chicago
Pricing Becomes a Commodity: Insurers Enhance the Consumer UBI Proposition by Integrating Complimentary Services for Product Differentiation