A round-up of insurtech items of interest to the Massachusetts insurance industry and beyond…
Cambridge Mobile Telematics’ Insurance Scoring Model Receives Regulatory Approval From 29 States
Cambridge-based CMT’s says its new proprietary telematics-based insurance scoring model has received regulatory approval in approximately 29 states. While the model has not yet been approved by Massachusetts regulators, it is likely just a matter of time as the company says there are an addition 21 more states pending approval.
“Many insurers don’t have a sufficient volume of telematics data to develop their own model,” said Fred Khoury, Director of Client Partnerships at CMT. Prior to CMT, Fred spent 18 years managing the auto product of top insurers. “Using CMT’s pre-approved model as a starting point streamlines the process for insurers and provides a fast implementation path. We are delighted with the fast approval rates and believe it is a testament to the quality of analysis and the predictive capabilities of the models.”
According to CMT, the new scoring model employs contextual driving behaviors such as “phone distraction and at-risk speeding, in addition to traditional telematics factors like hard braking.” CMT’s own data scientists and actuaries developed the scoring model by analyzing and using telematics data obtained from “hundreds of thousands of drivers covering billions of miles.” By working with CMT, auto insurers can avail themselves of this scoring model to help them better price policies in various telematics programs, such as CMT’s own DriveWell Platform.
The company also highlighted the many benefits implementing scoring models based on telematics programs has to both drivers and insurers, as well as the society at large. For example, it says that according to the National Association of Insurance Commissioners, linking insurance premiums more closely to actual individual vehicle or fleet performance allows insurers to more accurately price premiums, increasing affordability for lower-risk drivers. In addition, drivers also have the ability to control their own premium costs by having an incentive for reducing miles driven as well as in adopting safer driving habits.
“We have carefully analyzed the interaction between driver behavior and real-world crashes,” said Bill Bradley, Principal Data Scientist at CMT. “CMT’s scoring model provides a lift of 22x between the best and worst drivers, predicting which ones based on how they operate a vehicle.”
“Our analysis shows that distracted driving is one of the most significant factors that predict crash and claims rates,” added Hari Balakrishnan, CMT’s co-founder and Chief Technology Officer. “With the behavioral incentives available in telematics programs using CMT’s DriveWell platform, phone distraction reduces on average by 35% in 30 days, making roads safer for everyone.”
The Norfolk & Dedham Group Launches Intelligent Messaging Solution “Hi, Marley”
The Norfolk & Dedham Group®, a has entered into a new partnership with Hi Marley. Based in Boston, Hi, Marley is an intelligent conversation platform designed specifically with the insurance industry in mind. After a pilot run of the program resulting “significantly reduced claims cycle times with positive customer feedback regarding the claims experience”, the Dedham-based insurer decided to implement the solution across its underwriting and claims departments.
“Our clients expect and deserve exceptional service when they have a claim. Our communication solution needed to improve upon that customer experience,” said David Cote, General Counsel and Chief Claims Officer for The Norfolk & Dedham Group. “Policyholders will now be able to complete self-inspections and resolve their claims through simple text messaging, increasing speed and transparency in the underwriting and claims processes. We are excited to partner with Hi Marley, a local Massachusetts company with a best in class product, as we deliver an ever-improving client experience through innovative technology.”
As for the Boston-based insurtech start-up, it is excited about its partnership with the local insurer.
“We are excited to join The Norfolk & Dedham Group in their commitment to delivering an exceptional customer experience. They have been setting the standard since 1825, and we look forward to raising that bar together,” said Mike Greene, CEO and co-founder of Hi Marley.
According tot he company, the “Hi, Marley” platform connects insurers with their customers through user-friendly interfaces, including SMS messaging and web-based applications. Ultimately, Marley is helping insurers to eliminate the problem of “phone tag” by driving increased efficiency through the use of artificial intelligence.