ISO has launched a new vehicle decision tool that will provideinsurers with a method of analyzing driving location risk using GPSdata from telematics devices. The patent-pending GeoMetric vehicledecision tool will allow insurers to assess the risk of an insuredbased on actual driving locations--while also keeping the insured'sdriving locations private.

Many auto insurers are interested in using telematics to collectaccurate data on driving locations to develop differentiated autoinsurance products. However, there are obstacles related totechnology, data management, analytics, and cost to overcome thatcan result in years of delay. In addition, some consumer andprivacy advocates object to the use of Global Positioning System(GPS) data to record driving behavior and vehicle location as aninfringement of privacy.

"The GeoMetric report has been designed to allow insurers todifferentiate their driving behavior programs from competitorsthrough analytics with minimal development," says Steven Craig,general manager of Applied Informatix and A-PLUS. "In addition,GeoMetric reports will assess driving location risk withoutcompromising a policyholder's privacy regarding where they havedriven."

The GeoMetric report service is the first product available fromISO's Applied Informatix unit, which was established to gather andanalyze data from installed telematics equipment. ISO has filed apatent application related to the technology in this product.

"Our nationally representative survey on telematics conductedthis past June with more than 1,000 Americans indicates a desirefor privacy, but a willingness to share some detail or informationthat would allow a more individualized insurance premium," saysCraig. "We designed GeoMetric to provide insurers with theinformation needed to make better decisions when creating moreindividualized products while protecting policyholder privacy."