Can Insurers Connect To The Connected Car?

Today, more cars than ever are connected, and those connected cars are creating and transmitting a lot of data. This, in turn, has created a gold rush among automobile manufacturers (aka OEMs), insurers and others to find ways to monetize that data.

For personal auto insurers, the stakes are greater than ever.

Connected cars create data primarily in three ways. The first is by means of specialized computer chips (ECUs) that control, monitor or record vehicles’ systems and performance (e.g., the powertrain, steering, climate control, etc.).

Second, vehicles increasingly also have telematics control units, which monitor and record typical telematics data (acceleration and braking, speed, location, etc.).

Third, of course, connected cars create data through telematics apps on drivers’ mobile phones.