A new vehicle decision tool that is designed to help insurers analyze driving location risk using GPS data from telematics devices has been launched by Jersey City, N.J.-based ISO, a subsidiary of Verisk Analytics. The patent-pending GeoMetric vehicle decision tool will allow insurers to assess the risk of an insured based on actual driving locations — while also keeping the insured’s driving locations private.
The GeoMetric report service is the first product available from ISO’s Applied Informatix unit, which was established to gather and analyze data from installed telematics equipment. “The GeoMetric report has been designed to allow insurers to differentiate their driving behavior programs from competitors through analytics with minimal development,” said Steven Craig, general manager of Applied Informatix and A-PLUS, in a press release. “In addition, GeoMetric reports will assess driving location risk without compromising a policyholder’s privacy regarding where they have driven.”
According to ISO, many auto insurers are interested in using telematics to collect accurate data on driving locations, but are hindered by obstacles related to technology, data management, analytics, and cost. In addition, some consumer and privacy advocates object to the use of Global Positioning System (GPS) data to record driving behavior and vehicle location as an infringement of privacy.
“Our nationally representative survey on telematics conducted this past June with more than 1,000 Americans indicates a desire for privacy, but a willingness to share some detail or information that would allow a more individualized insurance premium. We designed GeoMetric to provide insurers with the information needed to make better decisions when creating more individualized products while protecting policyholder privacy,” Craig added.
Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio