The automotive and insurance industries are facing significant challenges and digital transformation primarily driven by regulatory requirements for increased road safety and the reduction of CO2 emissions. There are also demands of increased profitability and more significant customer benefit. In addition, we are experiencing the emergence of new business models and launches of a totally new segment of products. It is, in all aspects, an exciting time – a time full of opportunities. Behind it all, data collection and data processing are the enablers of these potential sources of growth and improvement.
We, at Greater Than, have been collecting car data since 2004. We have since developed an Artificial Intelligence (AI) based on Machine Learning, which can validate risk and convert it into an insurance premium per car in real-time. Today, our AI is the underlying foundation for a variety of insurance offerings and tools for fleets worldwide. We have developed services for car rental companies that want to reward safe car driving with lower rental costs, and pure insurance offers that connect the driver through App2Car functionality and make it possible to price the insurance based on driver claims probability. Now, we are ready for the next step. And it is with the help of tailored and reliable connected car data from Otonomo that we can take it.
By transferring data from Otonomo’s cloud-based platform to our AI, we can make it possible to convey risk insights without intermediate solutions, apps, or hardware. With this advancement, our AI can assess future claims costs and identify individuals that may or may not cause accidents, without interfering with the underlying and existing insurance offering. Quite similar to how share market performance and value are presented in real-time.
AI predictions are genuinely disruptive, as the vast majority of all loss ratio calculations are made based on historical data and segmented information based on certain groups and their average claims cost. With the possibility of identifying risk as it occurs today and how it will develop in the future, one can forecast both loss ratio and costs of it for the coming year or month, if you so wish.
Connected to our AI platform, motorists are reducing their risk of being involved in accidents by over 18% – already within three months – and they are continuing to drive safer and more environmentally friendly.
Data management and AI will significantly contribute to increasing knowledge in invaluable ways and introduce entirely new ways of pricing risk for gained cost-control and, in the long run, lead to increased profitability. Enabling data and AI into cars will actively contribute to higher awareness, new ways to communicate, and in the long term, a more sustainable road environment – for the benefit of both humans and nature.