CerebrumX Lab Inc., an AI-driven automotive data services and management platform, has announced it will incorporate Ford and Lincoln connected vehicle data to support its data-driven usage-based insurance (UBI)-as-a-Service model for insurers.
The model offers a quicker and more cost-effective implementation of UBI programs by using embedded telematics for eligible Ford and Lincoln connected vehicles, according to a joint news release from CerebrumX and Ford.
UBI programs that use embedded connected vehicle systems, with the consent of the customer, provide more accurate and reliable driving data, empowering insurers to reward safe driver behavior with opportunities for reduced personalized premiums, CerebrumX said. For customers that opt-in, CerebrumX‘s Augmented Deep Learning Platform (ADLP) collects and analyzes data directly from eligible Ford and Lincoln vehicles to generate a driver and a vehicle score with no additional hardware or apps required. The score is then used by insurers to “better assess risk, and build more accurate, personalized policies for their customers, such as Pay As You Drive (PAYD) and Pay How You Drive (PHYD), to support safe driving and optimize loss claims.”
“By opting into usage-based insurance, Ford and Lincoln owners can be rewarded for their good driving habits with more personalized insurance offerings,” said Amy Graham, Ford services marketing director. “CerebrumX‘s platform creates another opportunity for Ford and Lincoln owners to achieve insurance benefits with their vehicle’s connectivity to help reduce their total cost of vehicle ownership.”
The UBI-as-a-Service model acts as a one-stop solution making it easier for insurers to successfully launch UBI programs that bundle automotive data, AI-powered scores, and insights with handheld assistance in adherence to regulatory policies. CerebrumX accelerates the implementation of end-to-end services such as Consent handling, Integration of the Driver Score with existing Generalized Linear Models (GLM), State Filing Services Support, driver coaching, and UBI Performance Evaluation.
“With CerebrumX‘s UBI-as-a-Service Model, powered by AI-driven insights and accurate driver behaviour, we aim to streamline the entire usage-based insurance rollout process making it flexible and cost-effective,” said Sandip Ranjhan, CerebrumX CEO. “The UBI market is set to grow by nearly 30% in the next 5 years. The addition of Ford and Lincoln vehicles to CerebrumX‘s UBI-as-a-Service program will help Insurance providers extend coverage and scale, resulting in better adoption by the end consumer.”
With access to more than 15 million vehicles and 800 million miles of driving data, CerebrumX‘s AI-based platform is accelerating the pace of change in the automotive sector toward a more sustainable and safer society, the release states. It works with insurers, actuaries, and regulatory bodies across North America to launch data-driven UBI programs that benefit the end consumer.
J.D. Power found in its Q2 2022 Insurance Loyalty Indicator and Shopping Trends (LIST) report, released in August, that interest and adoption of UBI have increased, especially among consumers with fair or poor credit. More than 500,000 insurance customer responses were gathered for J.D. Power’s LIST since its rollout on Sept. 1, 2020.
“As consumers search for lower premiums they are increasingly turning to usage-based insurance programs to help alleviate the increased mobility costs,” the report states. “Since LIST began tracking both shopping and overall usage of UBI, we’ve seen a steady increase in adoption, particularly by those in the lower self-reported credit tiers, a trend that is likely to continue as macroeconomic pressures continue to impact consumers—particularly those who are price-sensitive.”
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