Driving behavior data: The new frontier for smarter auto insurance pricing 

Introduction 

This blog post originally appeared in the November 2025 InsurTech Denver newsletter and was written by Jessica Peskin. 

At InsurTech Denver, we believe the future of insurance will be powered by data that drives decisions. This month, we’re spotlighting Henry Kowal, Director of Insurance Product Management at Arity, a mobility data and analytics company born out of the Allstate Corporation in 2016. 

While telematics isn’t new, Arity is taking a decidedly different approach. Rather than launch another standalone program, they’re embedding mobility data directly into core carrier workflows — helping insurers price more accurately, acquire customers more efficiently, and reduce loss ratios using real driving behavior data. 

In our conversation, Henry breaks down what makes telematics work (and what gets in the way), shares key insights about Colorado’s risk landscape, and highlights how Arity’s tools — Geosight, the Arity IQ network, and the Arity Marketing Platform — are giving insurers a competitive edge without added complexity. 

About Arity, a mobility data and analytics company 

Q: Arity was born out of the Allstate Corporation in 2016. What problem did the industry fail to solve around mobility data, and how does that original thesis guide the work you are doing today?

Henry Kowal: The industry struggled to turn mobility data into actionable insights at scale. While telematics programs existed, they were siloed, expensive to run, and often limited to small subsets of policyholders. 

The original thesis behind Arity was simple: Driving behavior is one of the most predictive indicators of risk. If we can capture and normalize that data across tens of millions of drivers, we can help carriers price more accurately, reduce losses, and improve customer engagement at scale. 

Our North Star is even bigger: scoring every driver in the U.S. so that driving behavior becomes a universal, accessible risk metric. That vision still guides us today—making driving behavior data easy to access and integrate, helping carriers move beyond traditional rating factors and offer more accurate and personalized pricing based on how people actually drive. 

Challenges with telematics 

Q: Telematics has been a buzzword for a decade. When Arity deploys data and insights inside carrier workflows, what are the real friction points, and how have you made implementation actually stick? 

Henry Kowal: The biggest hurdles are operational — integrating new data into legacy systems and aligning underwriting strategies. Consumer adoption is another challenge: Drivers don’t want extra steps. We’ve addressed both challenges by: 

• Building flexible APIs 
• Delivering normalized scores already filed and approved by state DOIs 
• Sourcing data from apps consumers already use, like family safety or weather apps 

This allows carriers to implement telematics without launching a standalone program, making the experience seamless for the end user. 

Trust is essential. Drivers want clarity on what’s collected, how it’s used, and how it affects their price. When carriers explain that behavior-based pricing leads to more accurate rates, adoption improves. An Arity study showed that when telematics is suggested as a financial benefit to a driver, the take rate can be as high as 75%. Educating consumers is key to unlocking the full potential of this data. 

Colorado’s unique risk patterns 

Q: Colorado is gaining real momentum as an InsurTech ecosystem. Where do you see the strongest regional use cases or partnership opportunities here, and what Colorado-specific Geosight insights stand out compared to a national view? 

Henry Kowal: The Front Range from Fort Collins through Denver to Colorado Springs is the standout. Morning rush-hour miles have jumped significantly since 2023, meaning more commuting and more exposure — perfect for usage-based insurance, telematics partnerships, and fleet solutions. 

Statewide, overall miles driven are up, but ZIP-level trip share remains stable. That means growing risk without unpredictable distribution, which is ideal for behavior-based models. 

Interestingly, rural and mountain counties are gaining activity, while Denver’s share dips slightly. This opens new opportunities for regionalized scoring and local carrier collaboration. Compared to the national picture, Colorado’s surge in morning rush hour traffic is ahead of the curve, making it a prime market for real-time mobility data and predictive risk analytics. 

The power of mobility data for territorial pricing 

Q: Share a before-and-after example that shows commercial lift, such as loss ratio improvement, pricing accuracy, conversion, or retention. If relevant, include how Geosight territorial insights moved the needle. 

Henry Kowal: Integrated driving behavior data delivers clear results: 

• Conversion rates improved by 10% among preferred-risk segments 
• Retention increased 15% for safer drivers 

 Using Arity’s predictive driving score, carriers sharpen risk segmentation, reduce acquisition costs, and deliver competitive rates, all without adding friction at quote. 

Geosight adds another layer by providing territorial risk intelligence beyond ZIP codes. Carriers can now pinpoint high-risk areas missed by traditional rating methods. Our analysis shows Geosight improves territorial pricing accuracy by an average 30 percentage points of loss ratio spread—a significant edge in competitive markets.   

The next frontier of auto insurance technology 

Q: Looking ahead 12 to 18 months, where do you see the next frontier for mobility intelligence inside insurance, and how do Geosight and the Arity IQ network support that evolution for both carriers and consumers? 

Henry Kowal: Carriers face a dual challenge: Grow profitably and deliver more accurate pricing, all while managing legacy systems and evolving customer expectations. 

We believe the next frontier is smarter integration: using mobility insights to solve these challenges at scale without disruption. Our key platforms make that possible: 

• The Arity Marketing Platform uses mobility data to improve acquisition and engagement—reaching safer drivers with better offers and increasing marketing ROI. 
• Geosight offers advanced territorial risk insights using real-time behavioral data to uncover pricing opportunities beyond traditional ZIP code rating. 
• The ArityIQ network delivers driving behavior at quote time, enabling accurate pricing and improved retention—without needing a separate telematics program. 

Together, these solutions help insurers:  

• Price with precision 
• Grow profitably 
• Deliver usage-based rates without adding friction