The auto industry, like many others, is undergoing massive transformations.
The excitement about autonomous vehicles is palpable with manufacturers targeting production of self-driving cars by 2020, if not earlier.
However, a precursor to a Self-Driving Car phenomena is the Connected Cars revolution; one that is already underway and increasingly transforming the auto industry the same way smartphones transformed telecommunications.
A “Connected Car” is simply a car that connects wirelessly to other devices within and outside of the car.
While most new cars have embedded connectivity, existing cars require an after-market connectivity solution. As vehicles become increasingly connected to each other and to external infrastructures, car data can be shared. Cars, with over 20 built-in computers, generate a massive amount of data.
Through a comprehensive study, McKinsey recently estimated that this car-generated data could be worth $450 — $750 billion globally by 2030.
A massive opportunity for many players!
Intersection between Insurtech, Connected Cars and Data
Usage based auto insurance uses Connected Car data. Using real-time driving data, driving habits, and road and weather conditions, insurers can price premiums more accurately, provide customized and/or on-demand services, improve safety and reduce claim costs. In markets such as Italy, South Africa and America, auto insurers have been experimenting with usage based insurance for several years with mixed success.
Customer concerns about data privacy is one major hurdle preventing more widespread adoption. Consumers fear that their driving behaviour data may be misused or used against them at renewal or claims. Cost is another issue as insurers need to adopt cost-effective solution with lower upfront implementation costs. For insurers, the lack of meaningful data is another concern. But these issues are not insurmountable. Standards and protocols for using and sharing customer data are rapidly evolving.
Technology advances are rapidly driving down costs while performance, storage and functionality are increasing. And using after-market solutions rather than waiting for car manufactures to provide Connected Car data is one way for insurers to start using Connected Car Data.
This allows them to continuously refine their formulas and algorithms as more data become available from embedded connectivity to derive better outcomes. When car manufacturers provide access, these early adopters will be ahead of the pack. Lastly, given how this space is evolving, incumbent players will certainly need to work more closely with start-ups that are innovating with Connected Car Data.
iungo’s Connected Car Platform
iungo is a Stone & Chalk based start-up that is developing a Connected Car platform that targets the after-market first and embedded car connectivity in the future. iungo’s platform enables consumers to seamlessly connect their car with a cloud based solution.
This solution then curates, enriches and analyses the car data and can makes it available to a broad ecosystem of auto-related providers to seamlessly use this data.
For example, the consumer may be able access innovative on-demand, usage based car insurance by providing access to their driving data to auto insurers.
iungo’s Connected Car Solution will make driving becomes cheaper, safer, smarter, cleaner, and easier! Having secured its initial investment round from a strategic partner, iungo is excited to launch over the coming weeks with several launch partners.
If you are an existing player in the auto insurance sector, we would love to discuss potential partnership opportunities.
Roy Cooke, Founder CEO, iungo (firstname.lastname@example.org or 0424 263 776)