Digital Insurance Agenda

The Floow: unlocking the benefits of OEM data to create value-adding products and make mobility safer and smarter for everyone

Written by Roger Peverelli and Reggy de Feniks - Founders The DIA Community on Dec 28, 2022

The world of mobility is changing fast: the majority of new cars sold in Europe today are already connected. How does this affect motor insurance? How can insurers make use of the growing amount of data to improve their offer, reduce costs and develop new products?

The Floow is a telematics company that aims to fundamentally change the way insurance is priced and consumed. Using connected technology, they know how to unlock the benefits of OEM data to create value-adding products.
The Floow provides connected motor insurance to many of the world’s leading motor insurers, making mobility safer and smarter for everyone.

New opportunities for connected motor insurance

With the number of connected cars expected to grow rapidly (400 million by 2025) and a whole new range of data sets becoming available, connected motor insurance is now at the threshold of a new era to unlock much more value from vehicle data.
There is a lot of interest from both insurers and consumers: 73% of consumers are interested in connected motor insurance and many are also willing to share more personal information in return for lower premiums.
And the benefits are many: the use of telematics has not only helped reduce costs, but is also helping to make mobility safer: telematics programs have led to a decrease in casualties at twice the rate compared to non-telematics programs.

To realize value from mobility data though, there are some key challenges to overcome: data silos created by OEMs, each requiring separate contractual agreements, and providing data in different formats. Data privacy requirements also mean that managing consent processes can be complex and not always uniform. And the huge range of data sets and overwhelming volumes of data means that finding value among the noise can be a challenge. But for those that do navigate this complexity and get ahead, there is a lot of value to be gained.
In addition to well-known behavioural factors like speed, acceleration, braking and mobile phone usage, there is now a whole new range of data sets becoming available, that can further improve insights for insurers. Examples are real-time weather data from the vehicle, more accurate crash detection by using an array of sensors, as well as understanding whether the driver is approaching the limits of tire adhesion to the road, pushing the car beyond its capabilities.

How does The Floow help insurers?

The Floow partners with many leading insurers, helping them in four key areas: more accurate pricing by understanding the links between behaviour and risk, and how to embed this within insurance pricing models. They also help insurers to attract and retain users through better-targeted discounts and engagement schemes like apps, rewards and coaching programs. In addition, they help insurers reduce costs both by lowering the loss ratios and reducing the cost of operating connected motor insurance programs. And finally, they help insurers to build intellectual property and competitive advantage to thrive in the increasingly competitive insurance market.

How does it work?

The Floow has recently developed a new product, called Floow Fusion, fusing mobile phone data with data from the vehicle. The mobile app remains front and center in collecting the core behavioural data sets: speed, acceleration, and mobile phone usage. Regardless of whether the user is driving a Ford, a BMW or other car brand, through Floow Fusion those data sets will be collected in exactly the same format.

A new range of connected vehicle data sets will be added with the most widely available, like odometer, location and stolen vehicle recovery services. The planning is to add new data sets early 2023, like tire friction, the weather and other data sets where there’s value to be unlocked. The Floow is launching this proof of concept with several clients in Q4 2022.

Why did we select The Floow for DIA Munich?

The Floow has longstanding experience in developing innovative telematics solutions that address costs, inefficiencies and dangers faced by road users. By combining data science, social science and cutting-edge technology, they are working to make mobility safer and smarter for everyone.

At DIA Munich The Floow presented their new product Floow Fusion, fusing mobile phone data with data from the vehicle, enriching data sets and insights.

Who is The Floow?

The Floow was founded in 2012 by Aldo Monteforte, CEO, and Dr. Sam Chapman, CIO.
 The founders saw the opportunity to change the telematics industry by making use of data and social sciences to change driver behaviour and lower risks on the road. 

The Floow has a team of highly motivated technical people, data scientists and social scientists, examining the links between behaviours and risk – and computer scientists, turning these insights into workable solutions.

The Floow has offices in the UK and US and is now part of Otonomo, the market leading proprietary platform for vehicle and automotive data services.

Aldo Monteforte, CEO and founder The Floow
Barcelona 27 - 29 June 2023

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