IMS, a subsidiary of Trak Global Group (TGG), has made a usage-based insurance (UBI) platform for auto insurance available in both the US and Canada.
That same UBI platform had been utilized as the basis for Carrot Insurance, a critically-acclaimed, telematics-powered insurance program in the UK. Carrot’s system saw a limited rollout in Canada through the Calgary-based insurance broker InsureMy in 2018.
The modular UBI platform is compatible with telematics data across all device types – from plug-in hardware to mobile apps and embedded telemetry within vehicles, a release said. Apart from serving as the foundation of Carrot, IMS’s platform has been adopted by major insurers such as RSA, Zurich, and Aviva. Auto manufacturers such as Volkswagen and Fiat have also utilized the platform.
Through the platform, IMS will enable insurers in the US and Canada to rapidly scale UBI programs of their own. Partners will also have full access to eight years of in-market experience, insights, as well as validated learnings in driver scoring (backed by real-world claims data), engagement, and rewards. IMS will also provide partners with expertise on how to effectively use telematics data within claims.
IMS North America is led by Nino Tarantino, who joined the company in 2018 after his previous company, Octo Telematics North America, was acquired by TGG.
“The auto insurance market in North America is very competitive, and UBI has provided an opportunity for insurers to differentiate, while enabling improved risk selection,” said Tarantino. “Insurers must now begin to focus on using telematics data to effect positive behavior change, drive down accident frequency, improve loss ratios and generate ROI from their programs.”
Tarantino also commented that by giving partners access to the UBI platform – which has already led to a 40% reduction in accident frequency in other geographical markets – as well as IMS’s insights, it would be possible for those partners to see double-digit improvements to their combined operating ratios.