An AI-driven automotive data services and management platform, CerebrumX Lab Inc., announced it would integrate Ford and Lincoln connected vehicle data to back its data-driven usage-based insurance(UBI)-as-a-Service model for insurers, according to RDN.
According to a news release from Ford, the model provides a faster and more cost-friendly implementation of UBI programs by using embedded telematics for eligible Ford and Lincoln connected vehicles.
“UBI programs that use embedded connected vehicle systems, with the consent of the consumer, offer more accurate and reliable driving data, empowering insurers to reward safe driver behavior with opportunities for reduced personalized premiums,” said CerebrumX.
Augmented Deep Learning Platform (ADLP)
For consumers that opt-in, CerebrumX‘s Augmented Deep Learning Platform (ADLP) collects and analyzes data straight from eligible Ford and Lincoln vehicles to produce a driver and a vehicle score with no extra hardware or apps required.
Then, the score is 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 Ford services marketing director Amy Graham.
“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 plays as a one-stop solution which makes it easier for insurers to launch UBI programs that bundle AI-powered scores, automotive data, and insights with handheld assistance in commitment to regulatory policies.
CerebrumX boosts the implementation of end-to-end services such as Integration of the Driver Score with existing Generalized Linear Models (GLM), driver coaching, State Filing Services Support, UBI Performance Evaluation, and Consent handling.
“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.”
The release stated that with more than 15 million vehicles and 800 million miles of driving data access, CerebrumX‘s AI-based platform is boosting the pace of change in the automotive sector to a more sustainable and safer society.
It works with actuaries, insurers, and regulatory bodies across North America to release data-driven UBI programs that benefit the end customer.
UBI’s growth since 2020
In August, J.D. Power found in its Q2 2022 Insurance Loyalty Indicator and Shopping Trends (LIST) report, released that interest and adoption of UBI have grown, especially among customers with poor or fair credit. More than 500,000 insurance consumer responses were collected for J.D. Power’s LIST since its rollout on September 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.”