CSAA Insurance Group’s Rick Lanter: 3 things to know about Arity’s new telematics partner

CSAA Insurance Group has teamed up with Arity, leveraging the Arity IQ℠ network to competitively quote customers’ personal auto insurance policies. Rick Lanter, CSAA Senior Vice President for Product Strategy and Development, took a few minutes after the recent InsureTech Connect conference in Las Vegas to discuss the state of the market and the future of telematics.

#1 Investing in innovation

According to Lanter, this has been “the hardest market for auto insurers to work through” in decades, due to a variety of factors, including unprecedented inflation, rising claims frequency due to riskier driving behaviors, and vehicle automation and modernization making repairs even more expensive.

While those headwinds are posing a risk to the industry as a whole, matching the “right rate” to the right level of risk can help combat these challenges. The Arity IQ℠ network improves a carrier’s understanding of driver risk, ultimately enabling more effective pricing and underwriting.

#2 Improving risk

According to Lanter, “CSAA is interested in pursuing driving solutions that empower our members who exhibit safe driving behavior.” With a driver’s permission, auto insurance carriers can instantly access their driving risk profiles through the Arity IQ℠ network during the pricing process. It’s a win-win for both the insurer and customer:

• With insight into how a driver behaves behind the wheel day-to-day, insurers can more accurately price quotes based on actual safety and risk.
• With a better understanding of how their behaviors correlate to safety and risk, customers gain greater transparency and control when purchasing a policy.

As Lanter noted, “Correlating action – i.e., specific driving behaviors – to risk and price is very easy for everyone to see and understand.” And, as a bonus, it gives customers a chance to improve their actions for more desirable pricing.

#3 Prioritizing data consent

Consumer consent is far from “new” to the insurance industry, with the Fair Credit Reporting Act (FCRA) enacted more than 50 years ago. However, it continues to grow in importance, especially in today’s data-driven world.

According to Lanter, robust consent practices, data governance, and customer transparency is a high priority at CSAA. “It must be clear to customers what they’re consenting to,” he said.

As a data partner, Arity uses driver-permissioned data to benefit individuals and society at large. Protecting consumer’s data privacy is a top priority for our team, so we’re transparent and clear about what data we collect, as well as the value users receive in exchange for sharing their personal data.

Arity: Driving change with driving data

At Arity, we’re driving change with driving data. Along with our partners, we’re working to build a smarter, safer, and more equitable future for auto insurance.

To date, our dataset is connected to nearly 40 million U.S. drivers, and we have collected more than 1.3 trillion miles of driving data. As we grow and scale our dataset, our insights become stronger – and our partners thrive as industry innovators.

Want to join us in shaping the future of insurance? Reach out to learn how our enterprise solutions can work for you.