LexisNexis Risk Solutions has announced the launch of LexisNexis Telematics OnDemand, a product that integrates telematics-based driving-behavior data into insurer rating and underwriting workflows. The product enables US auto insurers to access a customer’s existing telematics data in near-real time at point of quote in order to more accurately determine the customer’s driving patterns. Telematics OnDemand will allow carriers to offer more personalized pricing to customers, LexisNexis Risk Solutions said.

Telematics OnDemand collects and delivers normalized telematics from US automakers, mobile apps, and third-party services that participate in the LexisNexis Telematics Exchange. Currently, the exchange includes General Motors, Mitsubishi Motors North America and Nissan North America. When consumers consent to share their driving-behavior data, they may be able to receive insurance discounts, participate in safe-driving rewards programs or take advantage of other value-added services. Insurers can use this data for rating and pricing, and ultimately to help improve loss rations and reduce at-fault claims expenses.

LexisNexis Risk Solutions said that it is working with multiple carriers to further expand the availability of telematics at point of quote. Insurtech Root Insurance is the first to adopt Telematics OnDemand.

“Root was founded on the principle that auto insurance rates should be based primarily on driving behaviors, not demographics,” said Kumi Walker, chief business development and strategy officer at Root. “Together Root and LexisNexis Telematics OnDemand will offer immediate, personalized, fair insurance rates to good drivers based on the data that comes directly from their car.”

“Telematics OnDemand shifts the paradigm for usage-based insurance,” said Adam Hudson, vice president and general manager for US Connected Car, LexisNexis Risk Solutions. “Previously, many consumers agreed to a UBI policy without historical driving behavior data, before knowing its true benefit. At the same time, US insurance carriers offered enrollment discounts meant to excite consumers without knowing the full risk to their books of business. Telematics OnDemand allows insurers to price risk more accurately earlier in the process with the consumer, and consumers receive a price that best aligns to their driving behavior without having to go through a monitoring period. Now both parties benefit at point of quote.”