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Wejo Group reached an agreement with Ford Motor Co. on using Ford’s connected vehicle data to inform US auto insurers’ rates and policies. The companies first launched the program in Europe in June.
Wejo, based in Manchester, England, said its data-based auto insurance program was designed to “better understand driving habits” in the US Ford said it would only provide data with permission of its customers.
“This data will help the auto insurance industry better verify customer-provided details, identify and reduce insurance fraud, offer more accurate dynamic pricing models, and reduce risks for safer journeys and less stress on policymakers and customers,” Ford and Wejo said in a joint news release.
The agreement comes as the auto and insurance industry continues to move to understand and use data-based driver and vehicle information points to set auto insurance pricing guidelines.
The general practice of gathering information points is often referred to as telematics. The skill tracks certain driving behaviors, such as miles driven and braking habits, using a plug-in device, a smartphone application, or, as in this case, data directly collected from the vehicle.
Wejo’s software and hardware solutions track how a person — or autonomous vehicle — drives by gathering multiple pieces of information, and then standardizing and optimizing those data streams at scale .
Wejo did not say when the US program would launch.
In a statement, Richard Barlow, founder and CEO of Wejo, said the partnership with Ford will enable “mutual benefit to both policyholders and insurers as auto insurance companies use connected vehicle data for goodness.”
Barlow said the deal is part of “reinventing” auto insurance for a “smarter, safer” future for the industry.
News of the agreement comes as a new study from the Insurance Research Council indicates that consumers are reluctant to adopt usage-based insurance (UBI) due to privacy concerns.
According to a study commissioned by the Insurance Research Council, an independent nonprofit research organization supported by leading insurance companies and associations, privacy concerns exist about initiatives like those put forth by Wejo.
Released late last month, the results of an IRC survey of more than 2,000 US drivers revealed that “many drivers are choosing not to participate in telematics programs,” though the report did not specify how many drivers will choose not to participate if asked.
The survey found that of those who participated in a telematics program, about 80% said the program helped change the way they drive.
The report revealed that part of the reason drivers may be concerned about such programs is that they may not understand how they work.
It is also known that US consumers have become cautious in recent years about privacy concerns as technology continues to advance in many areas of consumer behavior.
In a statement, Dale Porfilio, president of the IRC, said more drivers are participating in telematics programs today than ever before.
“Some consumers we surveyed indicated reluctance to sign up due to privacy concerns,” Portilio said. “Younger drivers are more likely to express concerns about privacy. This same group also indicated the highest interest in finding ways to reduce their premium.
While privacy issues will continue to loom large for some, there may be opportunities for proponents of telematics programs to drive home the safety angle.
A recent New York Times story highlighted how driver safety in the US has deteriorated in recent years.
According to the story, which cites federal data, traffic deaths have been rising dramatically in the US over the past decade, a trend that flies in the face of what is seen in other developed countries.
In 2020, when car and truck travel dropped dramatically due to the pandemic, the traffic death rate actually increased in the US
“Telematics programs provide an opportunity for safe drivers to lower their insurance costs and can improve overall road safety,” said Porfilio. “Most users say they have made positive changes in the way they drive as a result of the telematics data provided to them by their insurer. Safer driving reduces the frequency and severity of car accidents, saves lives and allows for more affordable car insurance for all consumers.”
Additional information
Wejo and Ford are working together to expand end-to-end insurance offerings across the US
https://www.wejo.com/resources/wejo-and-ford-team-up-to-expand-end-to-end-insurance-offerings-across-us
Driver Telematics Programs Face Privacy Concerns, IRC Study Finds
Click to access IRC%20Telematics%20Survey%20Report%202022%20News%20Release.pdf
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Featured image provided by Ford
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