ZUG, SWITZERLAND / ACCESSWIRE / April 7, 2021 / kasko2go is dedicated to building the first risk assessment solution for the car insurance industry based purely on irrefutable data. Over the last four years, the company has invested significant time and resources into developing the infrastructure for providing reliable probability assessments of driver accidents via its Normal Sigma solution and performed extensive due diligence on over 130 potential data providers. Due to the complexity of kasko2go's Big Data requirements, it has been challenging to find a provider that can deliver complete and accurate data in sufficiently high volumes necessary to generate the accident probabilities for drivers.
Therefore, it is with great pleasure that the company announces a partnership with HERE Technologies.
REALLY BIG DATA
Reflecting road conditions in real time
HERE, a global location data and technology platform, is a leading provider of traffic information. The company aggregates, anonymizes, and analyzes traffic data from an advanced mix of sources. These include sensors from connected vehicles, connected devices like smartphones, fixed road sensors, and governmental authorities. Alongside real-time traffic information, HERE also offers access to an extensive database of trillions of historical traffic records, providing insights into road conditions and analyzing and predicting traffic.
Data from over 3 million kilometres of road
Kasko2go now receives high-quality and accurate traffic data from over three million kilometres of road in the DACH region, updated every five minutes. This data shows the volume of cars passing through a specific road segment at any time of the day. Combined with existing data sources, including accident data, HERE's traffic feed now forms the cornerstone of kasko2go's entire system.
With this final piece of the puzzle in place, kasko2go now has all the necessary data for Normal Sigma to deliver accurate accident probabilities for drivers to the motor vehicle insurance industry.
So big that it takes three months to download
Kasko2go has already begun downloading over 27TB (27000GB) of historical traffic data from HERE, a process that is likely to take three months due to the sheer quantity of data. To manage this process and volume of data requires an experienced team of data scientists in which the company takes great pride.
Oleg Korol, Chief Technology Officer at kasko2go, states of the partnership with HERE: "This quantity and quality of data is required for our advanced AI models, and ensures that we provide a trustworthy risk assessment solution to the car insurance industry at a time when the sector is evolving."
BETTER DATA FOR BETTER PRICING
The main reason for a high loss ratio in the car insurance business is price competition on premiums. In the case of high market elasticity, insurers can only compete where their prices are lower than their competitors, resulting in many policies being underpriced.
This situation results in a higher actual loss ratio, also known as a "winner's curse." The wider the spread of estimated rates from the correct ones, the stronger the winner's curse becomes. In an ideal world, if all premium rates were set correctly, there would be no winner's curse, and the loss ratio would be precisely as expected.
Better pricing can be achieved in two ways. The first is to use a better model for pricing, which is generally a core part of the insurance industry business model. The second way is to use better, more accurate data regarding the probability of any individual driver having an accident. However, acquiring additional data is often not part of the insurance process.
Therefore, kasko2go offers the insurance industry an opportunity to take advantage of additional and more elaborate data regarding the probability of motor vehicle accidents. However, kasko2go also processes and models vast amounts of raw data to provide insurers only with the information directly relevant to better risk categorization and supports their pricing modeling processes. Ultimately, kasko2go aims to make the whole motor vehicle industry more profitable by using a more successful data approach.
Genadi Man, CEO of kasko2go, believes that the current industry challenge has arisen due to the pace of technological change in terms of big data and analytics. Ultimately, with the entry of firms that can support the changing digital landscape, the motor vehicle insurance industry will see more sustainable improvements in this regard. Price will continue to play a key role, but data will become the main component of decision-making, leading to a competitive edge due to lower loss risk.
Conclusively, it is the power of insights that guides business leaders to make smarter decisions and generate greater profit. "I am therefore very pleased to welcome HERE as a new partner, as they provide us with an extremely valuable data service" says Genadi Man.
Dieter Lange, Head of Partner Sales EMEAR at HERE Technologies, adds: "We are excited to collaborate with a partner like kasko2go, bringing data-driven innovation to the insurance industry. It is great to see our comprehensive traffic data applied in a way that supports kasko2go's vision to increase the profitability in the motor insurance process through mobile technology and big data. That's why we are happy to also provide additional sales support to kasko2go within the framework of our HERE partner program."
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