LexisNexis launches smartphone app for usage-based insurance

LexisNexis Risk Solutions has launched a new mobile app that would allow smartphones to capture and transmit driving data for potential usage-based auto insurance programs.

The white-label LexisNexis Telematics Mobile app, available for Android and Apple smartphones, is an attempt to compete with higher cost in-car telematics devices, the company said. It says its solution can cost up to 70% less than traditional on-board diagnostic port devices.

“Today’s telematics solutions have high costs with unknown returns that prevent carriers from creating forward-thinking telematics programs that can position their businesses for the long term,” noted Ash Hassib, senior vice president and general manager for auto insurance at LexisNexis.

The offering includes data collection, storage, processing and dashboard presentation, as well as information disclosure and customer service, according to LexisNexis. A customer-facing web portal can also be branded.

It also provides driver-specific behaviour data, not just vehicle data, which can provide more “granular” information that what’s collected through in-car only devices.

The company also says the app requires “limited use” of the smartphone’s battery and data plan.

“70% of insurers are in some phase of creating a UBI program but list high cost as their biggest challenge,” noted Mark Breading, a partner at Strategy Meets Action. “The smartphone provides insurers with a new option to address that challenge while opening the door to new opportunities at the same time.”