OEM and mobile telematics data: Unlock a more complete driver profile

Batman and Robin, Shaggy and Scooby-Doo, Chandler and Joey… Whether they’re fighting crime, solving crime, or just best buds, some duos are iconic simply because they’re better together.

When it comes to telematics data for auto insurers, OEM and mobile phone data are just that – better together. It all comes down to the fact that all datasets, like all people, have strengths and weaknesses. And a lot of times, it takes the right “other half” to strike the right balance.

Alone, they’re good. Together, they’re great! Especially when it comes to unlocking a more complete driver profile. Here’s what I mean by that:

The pros and cons of OEM data

Pros of OEM data

• The data comes directly from the vehicle: The data collected directly from connected cars is rich, powering insights related to both car “health” and driver safety. Unlike mobile data, connected car data can answer questions like: Are the tires properly inflated? Are all driver and passenger seatbelts secured while the car is on?

• There are more sensors: One of the main reasons this data is so rich is because connected cars are equipped with numerous sensors that are generating a lot of data, from road conditions, contextual speed, airbag activation, seat pressure, and beyond.

• Cameras are the future: While sensors gather important info related to what’s happening inside of the car, cameras can take that a step further and look at context – what’s happening around the car? In 2018, the National Highway Traffic Safety Administration (NHTSA) made backup cameras mandatory for all new vehicles sold in the U.S. But automakers aren’t stopping there, as they’re increasingly incorporating blind spot monitors, dashcams, and 360-degree cameras.

Cons of OEM data

• Data availability is not uniform: Not all cars are built with the same technology as it is constantly advancing, so not all cars are capable of generating the same types of insights. For auto insurance carriers, this means that OEMs aren’t currently the most consistent data source for measuring driver risk in a fair, equitable way.

• There’s limited scale: In reality, OEM data is only available on newer vehicles since this technology wasn’t really up to par until around 2014. Considering the average age of vehicles in the U.S. is 12.6 years, the scale of OEM data isn’t quite there yet.

• Each OEM speaks a different language: Again, all cars are built differently, so the amount and depth of data is different between all years, makes, and models. Additionally, how the data is contextualized varies. For instance, was the car going 35 mph in a 25 mph zone, or 35 mph in a 40 mph zone?

The pros and cons of mobile data

Pros of mobile data

• It’s easier to identify the driver: With additional capabilities like Bluetooth and telemetry, mobile phones can better detect who is driving the car. On the other hand, OEMs often can’t differentiate one driver from another if they’re both using the same key. Of course, missing the important data point of who is driving can skew insights that carriers need to offer an accurate insurance quote.

• Smartphones are ubiquitous: Unlike connected cars, there’s already an immense scale of mobile data with 90% of U.S. adults owning a smartphone. Fun fact: Arity is connected to over 40M of these users through consumer mobile apps and insurance telematics programs, representing over 15% of the licensed population – and growing!

• It’s more accessible: The scalability of mobile data is largely due to the fact that it’s more affordable, and therefore more accessible, for people. While not everyone can afford the latest car models, the vast majority of the population (like I mentioned, 90%) already have a smartphone.

Cons of mobile data

• The data is less rich: One advantage connected cars have over mobile phones are the number of sensors available for collecting data. While there are a handful of sensors on a smartphone (for instance, an accelerometer, gyroscope, barometer, microphone, etc.), it’s nowhere near the amount of sensors an automaker can fit on a ~4,000-pound car.

• It relies on SDK or app adoption: While worth it, it does take an effort to either integrate an SDK into an app before you can start collecting driving data and generating insights. Additionally, the app also has to be adopted and consistently used by a large enough group of people to produce reliable insights. This strategy takes time and significant investment.

• It requires battery usage: A great thing about leveraging data from mobile phones is that it establishes a continuous connection to the driver, whether or not they’re driving their own car or another. However, the downside to this is it can potentially drain a users’ battery.

The main takeaway? Many of OEM data’s “weaknesses” are mitigated when combined with mobile data’s “strengths” – and vice versa. So, while they’re both valuable tools for insurers, combining them can only lead to stronger, data-driven decisions.

Combining OEM and mobile data

Understanding driver behavior is becoming more and more critical for auto insurance carriers, especially for those who are focusing on growth. It’s all about building more robust driver profiles to better manage risk and retain safer drivers.

Even though this sounds simple, merging the data output by varying systems is a tedious and difficult task, which is why partnering with Arity makes sense as we’re a seasoned data and analytics company with established partnerships with both OEMs and mobile apps.

Ready to learn more? Check out our brochure to learn how Arity’s OEM and mobile telematics data can help you drive profitable growth.