The Floow said it is launching the world’s first complete, production-ready telematics platform.
Named FloowDrive, the system enables insurance companies, fleet operators and auto manufacturers that support responsible driving to adopt telematics technology, according to The Floow. Telematics for insurance is used to collect data about individual driver behavior to more accurately predict potential risk.
“FloowDrive gives insurers the ability to make more informed underwriting decisions based on specific, rather than general, demographic data,” the company said in a news release. “It also helps drivers lower their premiums by providing feedback and insights into habits that will increase safe driving behavior to lower insurance costs.
“In addition, FloowDrive is designed to use the driver’s smartphone as a sensor, allowing insurers, OEMs and other providers to launch into the telematics market in a matter of days, rather than several months.”
The Floow’s telematics platform is designed to access data from any journey-monitoring device, “meaning that FloowDrive will soon be available in a device-agnostic version,” the company noted.
Its launch comes at a time when a growing number of insurance companies are recognizing the benefits of emerging telematics technology. According to a recent poll of U.S.-based insurers conducted by The Floow, more than one-third believe the widespread adoption of telematics will be a major factor for defining risk and determining auto premiums in the future.
“In the past year, data from research company, Ptolemus, shows that the global telematics market has grown by 26 percent to 17.4 million policies,” said John Kramer, VP of North American operations for The Floow. “We believe the FloowDrive platform, combined with our access to big data and resources for educating drivers about safe driving practices, will fuel even greater demand for new telematics solutions in the months ahead.”
Kramer said FloowDrive offers several distinct benefits for consumers and insurance companies including:
Benefits for the consumer:
- Intuitive journey-scoring to better understand and address personal driving habits.
- Fairer pricing for insurance coverage based on an individual’s actual driving behavior.
- Access to an optional app-based rewards scheme that provides incentives and rewards safer driving.
- Additional education and coaching modules to help drivers understand their scores and identify changes they can make to drive more safely.
Benefits for insurers:
- Improve loss ratio by reducing claims.
- The ability to more accurately price risks and predict claims.
- Greater and more frequent customer engagement.
- Higher customer retention when compared to traditional auto policies.
- The ability to attract and reward the safest drivers.
- The ability to go to market quickly.
While on the road, FloowDrive acts as a hands-free mobile sensor that monitors driver behavior, and determines a safety score for each driver based on smooth driving, distraction, speed, fatigue and time of day, according to the company. By monitoring their scores and in-app coaching, drivers can identify how to become safer behind the wheel. As they improve their scores, drivers can then secure lower car insurance premiums, along with the potential to qualify for other rewards and incentives.