The insurance market and consumer expectations in the Nordic countries are changing rapidly, with usage-based insurance (UBI) going from a fringe phenomenon to something that is both wanted and expected by customers. However, in many cases insurers have had to choose between making costly investments in specific hardware or relying on less accurate smart phone apps.
At the same time, changing customer behaviours and near constant smartphone use has led to a sharp increase in distracted driving during the last few years, with consumers actively using their smartphones behind the wheel.
Based on smartphone data from actual drivers, upwards of 90 percent of all trips in the United States have some amount of distraction. According to TrueMotion’s own app data, the average driver spends roughly 12.5 percent of each trip talking, texting or “apping” behind the wheel. This, despite drivers knowing the dangers associated with distraction and numerous laws and regulations prohibiting it.
Left unchecked this development could lead to significantly higher levels of serious accidents in the future, and of course increasing costs - to insurance companies and to society as a whole.
TrueMotion’s mobile app uses the sensors built into smartphones (iOS and Android), combined with machine learning and data science to objectively and accurately capture how the phone is being used. TrueMotion tracks where the phone is (in hand, on a lap, in a mount, or cup holder, etc.) and how it’s being used, such as a phone call, tapping, swiping, typing, etc. during a drive. Each driver is given an overall score based on the amount of time he or she spends distracted, including handheld phone calls, handsfree phone calls and “swiping and typing” app use. Insurers can use this score to incentivize or reward safe driving.
“With TrueMotion, Tieto’s customers can now benefit from a smartphone based UBI solution that combines very high data accuracy and data quality with limited initial investment and implementation time and has a proven ability to significantly reduce distracted driving. The combination of our forces is unique in the Nordics, where Tieto has a long local history and can provide end-to-end implementation capabilities”, says Tieto’s Christian Segersven, Vice President Tieto Financial Services.
“The cooperation with Tieto will help make driving in the Nordics safer, by helping to reduce distracted driving and improving driving behaviours. We can leverage Tieto’s thorough market understanding and presence to meet the specific demands of Nordic insurers, while further enhancing our proven UBI solutions”, says Scott Griffith, CEO at TrueMotion.
TrueMotion’s patented technology has been shown to reduce distracted driving by 20 percent per trip amongst people who download and use the app for 12 weeks.
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal, by combining our software and services capabilities with a strong drive for co-innovation and ecosystems. www.tieto.com
Headquartered in Boston, Mass., TrueMotion brings the power of data and mobile technology to address the growing problem of distracted driving, which is responsible for thousands of deaths and hundreds of millions of dollars in insurance claims each year. TrueMotion’s core Usage Based Insurance (UBI) technology platform enables insurance companies to distinguish between safe and risky drivers, reward safe drivers and help reduce the number of auto crashes. More information is available at goTrueMotion.com
For more information, please contact:
Christian Segersven, Vice President Tieto Financial Services
email@example.com, +358 50 3112486
Scoville PR for TrueMotion