The industry needs telematics data
standards, and fast. The main business reason given is usually about
competitiveness. Drivers shouldn't be locked in to one provider at the end of a
policy term, just because they can't take their data with them.
One blogger pursues this thought in more detail, and from the policy holder's point of view: “If you are unfortunate enough to get yourself a bad driving record, then you could be tied to this provider and unable to get cover from any other provider and subject to accepting whatever policy your provider offers at whatever price they decide to set for you. That is if they even decide to insure you. You could even end up being uninsurable and unable to drive legally without ever receiving a criminal ban.”
He or she adds that standardization of telematics scoring would enable regulators to issue a rating system insurers would have to recognize. Once such a system is in place, drivers could train to improve their driving capability, using the published criteria.
These are good points. It's not just freedom to choose an insurer that's at issue here. Standards will also help to guard against customers being captured by companies running unfair practices. They can also be used to improve everybody's driving, so making the roads safer and reducing the risk profile of the business.
From a standards setting point of view, there are two issues here. One is the need for data standards. The other is the need for standard data values. So, we need a standard way of recording, say, swerves. But then we also need an agreement about what magnitude of swerve represents what level of risk element. Then companies can compete fairly, and consumers can make informed choices.
I don't know if the current situation is “the wild west”, in the words of this blogger. But it's a mess that can be avoided. The New Wild West
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