Auto 

Insurance TElematics

Example: Traditional methods may charge you lower premium if you have better credit score or education without the knowledge of your actual driving behavior
Auto insurance companies may use our patented DrivSafe smartphone telematics system to initiate or expand their insurance telematic programs. We can help you build and analyze large, statistically (and actuarially) credible driver behavior telematics data that provides the basis for greater precision in underwriting and pricing. Please contact us for more information on how you can integrate the DrivSafe system into your program.
Further, DrivSafe app provides on-demand personalized reports on the smartphone (instead of the usual process of going on-line via computer, registering on websites etc. to get driving reports). FREE DrivSafe apps are available for iPhone and Android phones.
The early adopters of the insurance telematics technology would be able to increase their pricing sophistication and select better and more profitable drivers.
At present, information about the individual’s driver behavior is collected through an electronic device that needs to be installed into the individual’s vehicle (e.g. plug into the ODB II ports of the vehicle). 
DrivSafe smartphone based telematics system significantly reduces the cost of auto insurance telematics programs, eliminates the need to distribute and track physical devices and produces more comprehensive information making it the clear choice for the next evolution of auto insurance telematics and usage based insurance (UBI) programs.
According to ComScore (a leading research and analytics company, March 2014), nearly 70% of US population already has smartphones. Further, 80+% new cellular phone sales are smartphones i.e. smartphone penetration is likely to reach 90+% over the next 2-3 years.

As smartphone penetration increases, more and more auto insurance companies would adopt lower cost smartphone based telematics programs.
This is where DrivSafe comes in – a pioneer in smartphone based telematics systems for the auto insurance industry. DrivSafe’s patented telematics system not only evaluates driving behavior using traditional telematics information like time of day, distance traveled and places visited but also provides additional information like the use of cell phone while driving which is a leading cause of accidents. 

DrivSafe monile telematics Can Help Initiate Or Expand Your Insurance Telematics Programs

Early adopters of insurance telematics and usage based insurance (UBI) programs continue to invest and expand their telematics programs. They are accumulating large volumes of driver behavior data and gaining valuable experience with the programs execution. Over time, as these programs become bigger, it would become more and more difficult (and costly) for late adopters to catch up with the early adopters.

Early telematics Adopter Continue To gather driving data and Widen The Information Gap ... catching could be difficult and expensive for late adopters

Thus the auto insurance company with telematics and usage based insurance program would be able to attract profitable drivers through their ability to observe and analyze individual’s driving behaviors. The auto insurance company without a comparable telematics program would be left with less profitable and more risky drivers (aka adversely selected against). 
For example, traditional pricing methods would charge two drivers with same credit scores, demographic profiles and vehicles, the same amount of premium. However, insurance telematics may show that one of the drivers exhibits less risky driving behavior than the other driver. In such a case, the auto insurance company with telematic and usage based insurance (UBI) program would be able offer a discount to the “less risky” driver and attract their business.
Despite present economics, auto insurance companies know that there are clear advantages to telematics and usage based insurance (UBI) programs. Early adopters of such programs continue to invest and expand their programs to accumulate driver behavior information and gain first-hand experiences with its execution. This information and experience could provide long-lasting competitive advantage against auto insurance companies that have not yet significantly invested in such programs.

Telematics Is The Next Evolution In Auto Insurance Pricing

The cost of these plug-in electronic devices used to collect driver behavior data ranges between~$100-200 per device. There are additional costs associated with the distribution of these devices to individual drivers and regularly collecting information back from them. Overall cost of telematics programs based on plug-in devices may become 10-20% of the total annual revenue (aka premium) per auto insurance policy. As the average annual returns for the auto insurance industry is less then 15%, the current plug-in based telematics programs are economically unsustainable.

Current Plug-in-Based Insurance Telematics Programs Are Economically Unsustainable

Auto insurance companies are increasingly investing in “insurance telematics” and “Usage-Based Insurance (UBI)” programs. These programs use individual’s driving behavior (e.g. distance traveled, places visited, time of day etc.) to determine their auto insurance premium. This is a significant advancement over the traditional methods to determine auto insurance premium that uses indirect “proxy” information like credit score, demographic profile etc. to “guess” the possibility of certain driving characteristics. 

DrivSafe telematics system provides comprehensive driving analysis

telematics provides greater precision in auto insurance pricing

Drivsafe smartphone based telematics system is a clear winner over tradition plug-in based systems

auto Insurance telematics