MyDrive's One-Second-Data Doctrine

05 Nov 2011

According to MyDrive Solutions' CEO, Linden Holliday, telematics became interesting to the insurance companies due to price reduction of monitoring technilogy and recent legislative decisions which cut their ability to individualise charges. Insurance telematics innovations play an helpful role in this context.

Holliday states that the usual 30 seconds sampling, a standard resulting from early arrivals aiming at low volume data transmission, is too low to capture individual driving behaviour. By measuring data more frequently, the amount of data collected is sure to be larger but can be handled, if done correctly.

Providing an accurate picture of driving manners, insurance companies will be able to offer a more detailed assessment of the risk presented and additionally, improvement strategies for their customers. Holliday therefore suggests a one-second data logging to become the new industry standard. Furthermore, behavioural driving data should be connected to the road network underlying, which means GPS tracking. Different types of roads generate varying accident rates according to recent studies. Gathering more information on where and how customers drive, enables insurers to assess the level of risk.

Holliday's advise for insurance companies is not to rush into hasty investments. Companies should carefully consider what they are aiming to achieve from deploying insurance telematics technology.