When we look at the connected objects of vehicles, or more technically what is called telematics, a major problem appears: the exploitation of data! The startup Otoconnect focuses on this segment and is working on the provision of multiple connectors, around a first target, the portability of contracts under the GDPR regulation.
The 3 bricks of telematics
- Data collection : There are today a number of tools, connected boxes or smartphone applications that are able to collect data from the vehicle (via the diagnostic socket), from context.
- Analysis : this step is today the one that remains the most vague. Indeed, what are we trying to do with this data, how to exploit it, and how to extract value for the insurer AND for the insured.
- Action : Once a segmentation or predictions have been made, it’s about making decisions and drawing conclusions about offers, prices, etc.
An underlying step is necessary: the provision of all these data in the same place! This sounds trivial, but rare are the value propositions that provide a box, a free and open analysis tool, and a personalized turnkey service. It is often necessary to use several different bricks.
Otoconnect works precisely on this axis, taking a slightly offbeat. Their point of entry is the need for portability highlighted by RGPD.
Portability, but still?
The regulation specifies that any company, let alone an insurer, must be able to provide a customer with data concerning him in order to enable him to take out a contract with a competitor. The concrete example is that of mobile phones in France. In this case, portability is automated! For an insurer, this could be today the certificate of bonus/malus for auto insurance or a possible certificate number of claims during the last 36 months in home insurance.
In other words, for the insurance industry today, nothing is automated! It is however the target anticipated by certain actors. The Rainbowbutton project, for example, is working on this case. They therefore campaign for the creation of a space containing all the customer data (in this case the insured). Thus, the portability will be simplified because the insured will own his secure personal space and will control and allow access to his data to his insurer or his competitors.
A necessary connectivity
In this approach, it is clear that the necessary data go far beyond the data from the vehicles! It’s about consolidating in one place data from technical controls, vehicle maintenance, insurance contracts, and so on.
GDPR portability, and after?
Value delivery by a platform
Once you have all the data in one place, it becomes much easier to consider a data crossover, in prediction, prevention or various modeling mode! This goes well beyond portability alone. For example:
- For a given model of vehicle for which a point of weakness is known, if the technical inspection report indicates a need for repair, why not take care of some additional repairs because we know that there is a higher likelihood of a loss?
- If we find that a driver has a driving and braking more brutal than the average and that there was a first repair on the pads, it seems relevant to alert the driver.
In other words, a platform solution with multiple connectors or APIs will be crucial in the future. It is thus possible to consider extending the horizon of possibilities. In my opinion, this type of platform will have to carry out data analysis services tomorrow and bring a level of services to insurers in their place, because they will often not be able to do it themselves. same (technology, skills, etc!).
What’s next for Otoconnect?
Every great journey begins with the first steps! Otoconnect is looking for an insurance partner to work around an MVP.
I would have warned you, this is a golden opportunity to be present and support the creation of a solution with a strong potential for value for the future!