Willis Towers Watson usage-based insurance (UBI), which includes DriveAbility, has now been acquired by Octo Telematics (Octo)
. As part of this, Octo and Willis Towers Watson plan to form a strategic alliance, advancing UBI data analytics and technologies to deliver leading-edge UBI solutions and capabilities to the insurance industry. View the press release
Willis Towers Watson and Octo share a similar vision. We look forward to continuing to drive and improve the application of telematics and telematics data into an increasingly connected society.
DriveAbility. If you’d like to develop or optimize a telematics-based insurance product, we can help. DriveAbility is trusted by insurers worldwide as a cost-effective way to rapidly go to market with a usage-based insurance (UBI) product. Based on actual claim data, we believe DriveAbility is the market’s most predictive insurance telematics score. Whether you’re just getting started with telematics or ready to join DriveAbility Marketplace, we can help you move forward with confidence.
Reliable scoring that accurately measures risky driving behaviors requires both analytical and insurance expertise. Our industry-leading DriveAbility score is trusted by insurers on five continents.
What makes a UBI score predictive enough?
It’s hard to overstate the urgency auto insurers are feeling to implement usage-based insurance (UBI) solutions. UBI is transforming the auto industry with clear benefits for insurers, policyholders and regulators. These benefits include improved claim handling, more accurate risk assessment, opportunities to differentiate products, increased consumer loyalty and reduced claim costs. Furthermore, a recent Willis Towers Watson survey confirmed that millennials are particularly interested in buying UBI, and most believe that UBI is a better way to calculate premiums.
With many of the best customers with the lowest loss ratios interested in UBI policies and value-added services, many insurers are looking for the fastest solution to get to market. Moving quickly is important, and so is quality. A UBI program must satisfy customer needs, meet business requirements and capture the right data for analysis. A scoring approach that doesn’t deliver reliable rating information can undermine your program and set you back to square one.
What makes a UBI score meaningful?
- Uses external data (e.g., weather, location) to put driving behavior in context
- Uses granular data that offer the flexibility to develop endless predictive behaviors
- Excludes unreliable data that can indicate implausible driving behaviors
- Aligns driving behaviors to claims at the exact moment incidents occur for proper context and validation of the model
- Provides meaningful segmentation
- Provides a lift above your current rating
- Can evolve as more data are collected and new predictors are found
- Is approved by regulators
Insurers should be wary of simple scores built on recording only a few driving behaviors. Tracking mileage, time of day and hard braking, for example, tells only part of the story. The predictive power of UBI comes alive when behavior is put in context with environmental data to produce meaningful scoring. Driving 80 mph on Interstate 5 in sunny San Diego, for example, is less risky than the same behavior on Chicago’s Lake Shore Drive in February.
Willis Towers Watson’s state-of-the-art DriveAbility program is linked with preferred telematics suppliers and is a cost-effective way for insurers to rapidly go to market with a UBI product. This comprehensive service includes consulting guidance by industry leaders, telematics devices and services through preferred providers, hosted data storage, data cleansing, expert analytics and the provision of UBI risk scoring.
Immediate access to market-leading scores based on pooled data. Since 2010, we have collected and pooled billions of miles of granular, per-second telematics data merged with external data and actual claim data. This high-quality data asset combined with our proprietary modeling techniques maximizes the power of our scoring. Insurers can immediately implement our DriveAbility score with confidence. Our score, already on file in most U.S. states, is trusted by insurers on six continents, including several of the top 10 U.S. insurers.
Secure and scalable infrastructure. With our secure and scalable data hosting and scoring platform, we collect, scrub, link, store and analyze data for you. This reduces the cost and work hours normally required to implement a UBI solution.
Management reports. We provide regular score reports to guide your pricing and underwriting, and help you monitor your UBI program progress.
Partnerships with proven technology providers. We understand one solution is not right for every company and continually expand our list of preferred providers so you can choose the right
technology for your company.
While a quick, one-step program can seem very appealing, a rich, scalable program that can go the distance will offer the most long-term value. Otherwise, you could be wasting time and money on programs that can’t be adapted to new technology or meet expanding customer demands. Solving such implementation issues is a strength of Willis Towers Watson’s consulting team and the reason so many insurers have engaged us to help them get to market with an efficient and effective UBI product.