July 13, 2024
Guest commentary: Automakers are the new enablers of telematics for the consumer

Many of us working in the connected car space are searching for explanations for the slow consumer adoption of telematics-enabled, usage-based insurance, or UBI, programs, especially as more new vehicles are embedded with connectivity, which helps power personalized insurance policies and can benefit customers.

Although insurers have widely embraced data, including driving and vehicle data or telematics data, to price policies and manage claims risk, consumer-driven usage has yet to truly expand. But as both vehicle and telematics technologies evolve, I believe we need to engage a key player often missing in the conversation to help customers discover the benefits of using their data for insurance: automakers.

In our latest U.S. Consumer Survey, conducted in December 2021, we found that 67 percent of respondents are aware that their driving and vehicle data can be used for insurance discounts. However, only 22 percent of consumers have used their data for discounts on their insurance premium.

Based on the survey results, consumers can see the value of using their driving and vehicle data but may struggle to engage in UBI programs. So, how can automakers help their customers take advantage of their telematics data?

Automakers, in fact, already play a significant role in supporting their customers’ engagement in UBI programs. They are enabling consumer participation through embedded connectivity, which allows the collection and transmission or sharing of vehicle and driving behavior data. They are also partnering with insurance companies and other third parties to find optimal opportunities to leverage their vehicle and driving data. Automakers are certainly engaged in delivering a more personalized experience for their customers.

But they can do more.

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