Discovery Limited Partners with Cambridge Mobile Telematic to Transform Auto Insurance

By Peter Bernstein
Senior Editor

For anyone following things related to the “connected car”, you are aware that the information being generated from those smart cars is of more than casual interest to auto insurers. In fact, the emerging field of “behavior-based” auto insurance is poised to transform the way all of us buy policies as new rates are introduced based on our driving habits and skills, and we are rewarded for good driving. 

This is a global phenomenon as illustrated by the announcement that South Africa-based global insurer Discovery Limited has reported a strategic partnership deal with Cambridge Mobile Telematic. The reason this is such a ripe area comes from an estimate by ABI Research (News - Alert) that the monitored driver population with grow from 1.85 million during the baseline year of 2010 to over 89 million by 2017. It is an estimate that given the pace of connected car activity may conservative. 

Discovery Limited said the deal will further bolster the current productive relationship between its auto- term insurance arm, Discovery Insure, and CMT.

Adrian Gore, Chief Executive Officer of Discovery Limited, said, "This strategic partnership with CMT further enhances Discovery Insure's leadership position in the growing industry of behavior-based auto insurance. While auto insurers are using telematics technology to monitor and track driving behavior with discounts on premiums to policyholders, Discovery Insure harnesses both telematics technology and behavioral economics to promote safer driving, with exceptional results for both our clients and the company."

"We are focused on continuing to expand our global footprint and align with companies that share our vision - to make better drivers and safer roads," said William Powers, President and Chief Executive Officer of Cambridge Mobile Telematics. "Through a strategic alliance with Discovery Limited, we can collectively shape the future of the behavior-based insurance industry."

If you are curious about what is involved in behavior-based insurance the types of information that CMT provides is instructive. Founded by two MIT (News - Alert) professors and experienced entrepreneurs, the company develops mobile sensing technology and data analytics designed to help improve driving behavior. The technology is used worldwide in popular smartphone applications, and has already proved disruptive in how the global insurance market evaluates driver risks.  The company technologies include:

• Identifying frequent phone use while driving
• Inferring the longitudinal and lateral accelerations of a vehicle, as well as its velocity, to highlight unsafe acceleration, braking, and cornering events, from smartphones in arbitrary orientations
• Automatically detecting when driving starts and stops
• Providing users with immediate and engaging feedback about their driving behavior via polished smartphone applications.

If nothing else, the availability of behavior-based information to contact center agents when they are discussing terms and conditions of auto insurance is going to be a game changer. I am looking forward to an interesting discussion when I am up for renewal.