While the first wave of telematics solutions for insurance have largely relied upon proprietary solutions that lock drivers into a particular insurance company, Canada’s Independent Broker Resources Inc. (IBRI) and insurance technology provider Quindell Portfolio Plc look to change that.
The two organizations have just announced a partnership to develop telematics technology for the Canadian market that lets drivers control and their data with them.
IBRI, a wholly owned subsidiary of the Insurance Brokers Association of Ontario (IBAO), predicts that between 10 and 30 percent of all Canadian auto insurance policies will transition to being telematics based, according to news site MENAFN.com.
Telematics solutions for the insurance industry typically allow drivers to plug a device into their vehicle to record key metrics. From these metrics, insurance firms can gauge how safe their customers are behaving and offer rewards for those who drive safely. Telematics also can deliver car health diagnostics and access to discounts.
What makes the partnership unusual is that its model focuses on consumer protection and data privacy. The telematics product being developed by IBRI and Quindell lets drivers keep control of the data that is collected, instead of having it go automatically to the provider. The driver then can decide with whom to share the data.
Drivers also can take their data from company to company, avoiding insurance agent lock-in.
"The IBAO is focused on ensuring that consumers' interests are protected. The data collected is to be owned by the consumer and readily accessible by the user," said IBAO CEO Randy Carroll in a statement. "Their data is also transferable. Their digital driving history will follow them, limiting them from being ‘locked in’ with one insurance company."
Colin Simpson will head up IBRI as CEO, which will manage the launch of the telematics offering in the market.
Simpson has been an active member of the insurance industry for 15 years and has been involved in a number of projects delivering leading edge technology, according to MENAFN.com.
"Colin is the ideal leader for the implementation of this insurance game changer as he bridges the insurance and technology worlds," noted Carroll. "I am looking forward to working with Colin in his capacity as CEO of our wholly owned subsidiary."
Edited by Peter Bernstein