Cambridge Mobile Telematics introduces the next generation of telematics risk segmentation

Cambridge Mobile Telematics is announcing Advanced Risk, “a groundbreaking” risk segmentation solution that delivers “next-generation” telematics variables.

Advanced Risk gives auto insurers new variables like Contextual Speed, Advanced Distraction Variables, and Compound Events:

  • Contextual Speed: Contextual Speed, which CMT has patented, measures a driver’s speed compared to historic speeds on a road segment. Speed distribution metrics for road segments are dynamically updated based on driver speeds across the CMT DriveWell platform.
  • Advanced Distraction Variables: Advanced Risk offers multiple dimensions of distraction, beyond phone motion and handheld and hands-free phone calls. For example, the Context Switching variable identifies distraction-induced acceleration and braking events.
  • Compound Events: Advanced Risk includes new variables of overlapping events that generate the most value in a predictive risk model. Multiple combinations of risky events are available for carriers to test and analyze out of the box.

Advanced Risk also provides new benefits for consumers. With more granular risk segmentation and fine-tuned pricing models, carriers can address more segments of the market while providing pin-pointed behavioral feedback to their policyholders.

“Auto insurers know that driving data is the new competitive advantage. Every top insurer in the US has a telematics program today that utilizes variables like harsh braking and phone distraction to assess a driver’s risk and develop customized pricing algorithms. Carriers refine their pricing algorithms over countless iterations by investigating and incorporating new variables to match rate to risk. With Advanced Risk, carriers have access to new driving data and analytics to refine their custom scores and sustain a competitive advantage in a rapidly evolving marketplace.” – Lakshmi Shalini, VP of Risk & Insurance Analytics for CMT.