RISK: from Usage to User Based Insurance
RISK has partnered up with Sentiance to introduce the next generation of User Based Insurance (UBI), namely behavioral and contextual insurance. While the current generation of UBI is focused on analyzing car data during a trip, our new product will track people’s driving behavior and context by analyzing smartphone sensor data.
The driver’s activity focus is important. Are the drivers using their mobile phone while driving? Studies show that distracted driving is the main cause of accidents, with phone usage being the primary concern. Our new application will, therefore, track phone handling next to all other driving events (such as acceleration, deceleration, brakes, turns and speeding).
One of the key benefits of using Sentiance smartphone-based technology is that no dedicated in-car device is needed. Based on extensive testing of the new app on current generation smartphones, we have been able to positively validate the accuracy of built-in devices.
What’s more, the data collected through the new app can be extended beyond the trip, to provide additional context in the evaluation of risk. A trip is no longer just a trip; it is a trip to and from a supermarket, a regular commute, or a trip on the way back from an evening out.
It is important to know where drivers are coming from and where they are going. Someone who drives home from a bar every night probably has a higher risk profile than someone who drives home straight from work. Knowing the before and after the trip, activities add highly relevant contextual insights.
The general lifestyle and therefore physical and mental health of a driver are important as well. How much does the driver sleep or how hard do they work? A sleep-deprived workaholic probably has a higher risk profile.
All the data collected will lead to establishing a unique customer profile and individualized driving DNA, which will play a much bigger role in evaluating insurance risk and claims, instead of single trip data. In other words, consistent customer behavior will be significantly more important than a single trip in case of an accident.
From a customer’s perspective, the app integrates his personal profile, insight in driving behavior and trip details, as well as access to the full insurance portfolio. The app enables the customer to change his insurance policy on the fly while providing an overview of cashback due to his driving behavior (where applicable). Customer interaction is made possible from within the app in various ways like integrated chat.
Sentiance is a data science company turning IOT sensor data into rich insights about people’s behavior and real-time context. These insights enable companies to understand how customers go through their everyday lives, discover and anticipate the moments that matter most, and adapt their engagement to real-world behavior and real-time context. The Sentiance SaaS platform collects sensor data from smartphones and IOT devices to interpret situational context in real-time and understand user activities and whereabouts. This data is aggregated to create rich behavioral profiles and support predictive capabilities. Sentiance context intelligence enables solutions for lifestyle based insurance, contextual marketing & commerce, smart mobility, connected health, smart home, smart city and connected car.
- RISK is an InsurTech Service provider and MGA for Brokers, Insurers and Affinities
- RISK has a focus on (innovative) solutions for customer demands in insurance while maintaining a profitable business for our insurers
- RISK has a strong presence in the Netherlands in the segment of UBI car insurance (“VOOROP” and “fairzekering”
- RISK believes in cooperating with partners sharing the same vision
- RISK has underwriting authority for 18 insurers, is able to underwrite over 100 labels and has 250 brokers using her systems.
Co-written by Tom Vandendooren from Sentiance and Tony Dingemanse from Risk.nl
More blog posts
5 Benefits of Mobile-based UBI
Car crashes in the future: insurers will win on mobile
Sentiance: Best Mobile User Insight Platform & Innovation in Data Privacy and Security 2020
“Pay How You Move” – a hyper-personalized mobility insurance based on a customer’s unique mobility profile
Sentiance: 2020 highlights
AI-driven crash detection with a human-centric approach