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

Many auto insurers are interested in using telematics to collect accurate data on driving locations to develop differentiated auto insurance products. However, there are obstacles related to technology, data management, analytics, and cost to overcome that can result in years of delay. In addition, some consumer and privacy advocates object to the use of Global Positioning System (GPS) data to record driving behavior and vehicle location as an infringement of privacy.

"The GeoMetric report has been designed to allow insurers to differentiate their driving behavior programs from competitors through analytics with minimal development," says Steven Craig, general manager of Applied Informatix and A-PLUS. "In addition, GeoMetric reports will assess driving location risk without compromising a policyholder's privacy regarding where they have driven."

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

"Our nationally representative survey on telematics conducted this past June with more than 1,000 Americans indicates a desire for privacy, but a willingness to share some detail or information that would allow a more individualized insurance premium," says Craig. "We designed GeoMetric to provide insurers with the information needed to make better decisions when creating more individualized products while protecting policyholder privacy."

Special Reports /

New Decision Tool Assesses Risk Using Driving Locations

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