360 Perspective

Kairos helps clients see the mobility landscape broadly… understand its past… and anticipate its future with confidence.

With leadership at the intersection of telematics, data and analytics, safety and claims, strategy, product design, and marketing, we offer a unique and clear vision.

MOBILITY IS CHANGING—AND THAT’S CHANGING EVERYTHING

OEMs are sitting on (mobility) gold… and are ramping up their data service capabilities. By 2023, 250 million connected cars will be on the road, capable of generating information on driving behavior, vehicle health, and infotainment.

Expect to see OEMs providing data not only to insurers (for pricing and first notice of loss), but to dealers, municipalities, road-user charging authorities, retailers, and emergency responders.

EASE AND TRANSPARENCY WILL HOOK CONSUMERS—VALUE WILL KEEP THEM

Consumers have — and will continue to be — occupied with privacy and security of their data. And as we move forward, they will expect control over the capture and sharing of their data, along with review and dispute ability.

At the same time, consumers have — and will continue to be — responsive to value. Companies in a range of industries are gearing up to provide easy-to-use, transparent, and disruptive products and services using consumer data. Those that do it right will be richly rewarded.

UBI IS BEING DEMOCRATIZED—THE ERA OF PORTABLE DRIVING SCORES IS COMING

OEM-controlled, embedded hardware and headunit apps will democratize UBI; driving data bureaus — analogous to credit bureaus — will emerge.

These bureaus will develop and sell portable driving scores that give insurers the opportunity to rate on driving data without the overhead of a proprietary UBI program. We’ll see a flattening… a democratization of UBI… as the few, large insurers with proprietary programs now will no longer have exclusive access to that data.

DATA WILL DRIVE MONETIZATION

The current UBI model — the notion of “pay as you drive”—  scratches the surface of what’s possible as more, more sophisticated, and more granular data becomes readily available to insurers and other parties.

MOVING FORWARD—AND MOVING NOW—IS BETTER THAN WAITING

Telematics first movers will bear the trial-and-error, but will also reap the greatest rewards as the space matures. The evolution of vehicles from “modes of transportation” to “rolling hardware” will be a push-pull dynamic: OEMs will continue to push the envelope with the technology, while insurers, TSPs, and other service providers offer the pull through new consumer services.

This is the time to get in. Those that make the investment now will be the ones driving the future of the space.