The automotive industry is shifting its attention away from infotainment to focus on transformative technologies that will enable the Mobility as a Service paradigm to spring to life. Third-party platforms like CarPlay and Android Auto increasingly dominate the industry as it explores the benefits of ADAS, V2X, 5G connectivity, AI, AR, driverless vehicles, electrification, and IoT. And the future starts now, with the new car and ride sharing economy already evolving to take Uberization to the next level with driverless taxis and multimodal transportation. In the shorter term, car-to-cloud vehicle sensor data crowdsourcing for traffic, parking, weather and map services and cloud-to-car Over the Air Updates for life cycle and cyber security management are critical focus areas. Commercial vehicle technology is evolving from aftermarket fleet telematics to embedded connectivity, active safety and ADAS, platooning and ultimately autonomous trucks.
With Progressive’s Snapshot having attracted more than 1 million drivers in the US and Octo Telematics already counting close to 1.3 million UBI customers – mainly in in Italy – insurance telematics is now entering the mainstream market, at least in certain countries. At the same time; however, the very nature of UBI is changing, embracing advanced driver monitoring analytics, moving to a proactive safety approach based on accident prevention, embedding UBI in a wider set of safety telematics offer, and leveraging the power of connectivity for CRM programs aimed at improving the customer experience and loyalty.
With the emergence of active safety systems such as ADAS and various forms of semi and fully autonomous driving and the drive towards a zero risk environment, the auto insurance industry faces new paradigms which will fundamentally change the nature of insurance telematics.