The proverbial drive to leverage the data from cars to benefit the customer journey for UK and EU car owners has in some ways only accelerated as an outcome of the pandemic. Capgemini research suggests a rekindling of interest in vehicle ownership among younger consumers and a recent Forbes article claimed the pandemic has restored our relationship with cars. From our perspective as a data and analytics provider, LexisNexis Risk Solutions is seeing increasing interest from European-based car manufacturers in sharing car data, including mileage data from a connected car. We are also tapping into new forms of data, such as ADAS details not available until now, to help deliver more flexible car insurance programmes and products so that consumers can benefit from a reduced total cost of ownership.

We have a huge opportunity to understand the value of static data regarding vehicle build information including the presence of ADAS features for insurance pricing. As discussed in a previous article for Automotive World, an ADAS classification system is now in place and motor insurers across Europe are starting to test the data solution against real-world performance and claims data.

Customer trust and education must be front and centre in car data developments

Understanding the link between ADAS features and the cost, frequency and severity of insurance claims could give car manufacturers much deeper insight for vehicle-level benchmarking and to understand ADAS system efficacy. It could also give car makers the ability to showcase to customers the true safety impact of purchasing vehicles equipped with ADAS, aiding decisions to invest in the technology and in turn support the sector’s zero fatality strategic objective.

In addition, data from the connected car for mainstream usage brings carmakers and insurers together to deliver benefits. Foundations for this type of data sharing initiative have already begun through the creation of a telematics exchange where dynamic connected car data is standardised, contextualised and normalised for delivery back out to the market as driver scores for quoting and underwriting via usage-based insurance programmes. This approach removes much of the complexity, cost and compliance issues car manufacturers could otherwise face delivering insurance benefits from the connected car. It also helps pave the way for subscription, pay per use, pay per mile and other mobility models of the future.

Understanding the link between ADAS features and the cost, frequency and severity of insurance claims could give car manufacturers much deeper insight for vehicle-level benchmarking and to understand ADAS system efficacy

Clearly customer trust and education must be front and centre in car data developments. Consumer studies have shown that there is already wide acceptance and comfort regarding the use of vehicle and driving data for insurance. In a study conducted across Europe by LexisNexis Risk Solutions, the benefits were clear and had varying levels of appeal for over 68% of those surveyed, but 83% would require greater transparency on how shared data is used. It is important to fully understand consumer consent opportunities presented in the connected car environment and car manufacturers are keenly aware of the potential risks as well as the potential to delight customers.

Consent management and compliance processes are therefore top of the agenda as we work with the European automotive market, leveraging our experience in delivering UBI and other insurance-related programmes and more broadly, as part of an EU funded project to help enable mass market delivery of vehicle data-based services.

The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd.

Paul Stacy is R&D Director and Director of Automotive Development, EMEA, at LexisNexis Risk Solutions

The Automotive World Comment column is open to automotive industry decision makers and influencers. If you would like to contribute a Comment article, please contact editorial@automotiveworld.com