Tech blogs, and the industry in general, have been saying it for years, “Big data will disrupt and infiltrate many traditional fields, forever changing the landscape of industry.” And this continues to hold true, this time with Driveway Software, a company that uses telematics to completely change the way insurance companies and policyholders look at their insurance policies.
We had a chance to ask Igor Katsman, founder of Driveway, some questions about his brainchild, as well as an in-depth look at how Driveway Software scores drivers and relays this information. Keep reading below for the interview!
Examiner: Thanks for taking the time to talk with us, would you like to introduce yourself and your role at Driveway Software?
I am Igor Katsman, Founder of Driveway Software and the inventor of our smartphone telematics technology. My role at Driveway is to continue to innovate our platform to be the most accurate, efficient and robust telematics platform on the market.
Examiner: What inspired the creation of your product?
We saw from our own life experience that although many people are good to average drivers, there are some drivers that are really bad ones and most of the time, they don’t even know it. We thought that if there was a product out there that could automatically and objectively evaluate how they are driving, this could be a huge benefit to make roads safer for everyone. They would then know if they are good drivers or bad drivers and what is really interesting, know exactly why and what they can do to improve it.
Examiner: What is Driveway Software, in your words?
Driveway – is an advance smartphone-deployed telematics platform for safe and green driving. Its big data cloud analytics service helped hundreds of thousands drivers to save money on gas and car-insurance, as well as assisted auto-insurance carriers to maximize their profits. Once installed on iPhone/Android smartphone, Driveway’s app automatically detects driving trips and scores their performance based on dozens of scientific risk indicators. Driveway’s cloud technology transforms this data into specific actionable saving suggestions. Driveway operates in mobile telematics and Usage Based Insurance markets, both in US and globally.
Examiner: You recently got funded correct? Tell us more!
We received $10 million in funding from Ervington Investments, a prominent venture capital firm. This is a huge recognition of Driveway as the best in class smartphone telematics platform. The funds will be used to strengthen our sales and marketing, to turbo charge our growth so that we can bring Driveway telematics to drivers all over the world and make roads safer.
Examiner: Your website talks a lot about UBI and your UBI score, can you explain what that is exactly?
Today, insurers use proxy risk factors, not looking at consumers as individuals but rather as an lumped groups with certain characteristics in common. Our platform, automatically, accurately and objectively rates drivers based on their individual driving behavior, such as braking, accelerating, cornering, speeding, time of day and annual mileage. This allows them to be priced transparently and fairly. Also, because 80% of drivers subside the statistically risky outliers, this results in substantial savings to those that sign up for a UBI policy. For insurers, this results in a book of business with a lower Loss Ratio then a non UBI book. Thus a UBI score is a representation of a driver’s risk that the insurance company uses to price their policy. A traditional risk score is a combination of age, zip code, FICO score, etc. for a pool of people vs. a UBI score that is an accurate representation of the particular user.
Examiner: How does Driveway’s telematics benefit insurers?
Insurers can more accurately segment, analyze and thus price their policyholders with the end result being a book of business that has lower loss ratios. They can differentiate themselves from the competition by offering fair and transparent pricing, tailored to the individual. They can now have a presence on their consumer’s smartphones that add’s value that is engaging and useful to their everyday lives. By having such a presence they can build their brand and engage their customers with additional “value add” services.
Examiner: What about drivers?
Drivers benefits are best described by our three key values to them, Fun, Savings and Safety.
- Fun: They can see who is the best or better driver. Me or mom, man or women, where was I a speed demon, etc.
- Savings: Good drivers can get savings and rewards from insurers. Fair and transparent pricing vs. traditional opaque process, tailored to them.
- Safety: Drivers can see how safe they are and why, then get actionable feedback on how they can improve. Driveway is the only smartphone app that does a lot of the processing in real time on the phone. Thus, the driver can get actionable tips on improving as soon as the ride is over.
Examiner: Is the smartphone app available for both iOS and Android?
Yes it is, since 2012 with over 250K in downloads.
Examiner: Thanks for taking the time to answer some of our questions, is there anything you’d like to close with?
Driveway has very unique and hard to replicate technology years ahead of the competition. We are the only platform that is accurate enough in our trip capture, while being efficient in our battery and data usage. Bringing safety to drivers represents a huge opportunity in a global market. But, there is also another play here. Once we have an active install base of drivers, we will become a big data company that can offer actionable insights on insurance pricing, safety, car usage, road congestion and much more, to individuals, fleets and shared economy drivers.
We’d like to thank Igor for taking the time to answer some of our questions. If you’d like to know more about Driveway’s recent funding, check out our article here, or their website for more information on the company.