Connected Car Platforms, A Field Trial: Are they Ready for Usage Based Insurance?

Following a regulatory change in Europe which mandates that car manufacturers
include an “eCall” system in new vehicles, many car manufacturers are
adding additional services on top, so that more and more cars become connected
vehicles and act like IoT sensors. In the following study, we analyse the maturity
level of this new technology to build insurance products that would take vehicle usage
into account. For this, the connectivity of recent cars a-priori eligible has been
first tested. Then, an ad-hoc platform has been designed to collect driving data.
In particular, 4 cars have been connected to this platform for periods of over one
month. Our results highlight that, while this technological innovation appears very
promising in the future, the pricing, the lack of uniformity of data collected and the
enrollment process are currently three pain points that should be addressed to offer
large-scale opportunities. In the meantime, this technology might still be used for
high value use cases such as the insurance of luxurious cars.