Root Insurance has joined the Verisk Data Exchange, a telematics data exchange in the US.
Through this, Root will gain access to insurance-ready driving data from consenting consumers to enhance its UBI program. This will improve its scoring model to price coverage at the point of sale.
Later in the year, Root will utilise the exchange’s Discount Alert product, which enables insurers to offer competitive insurance rates to qualified drivers based on their driving behaviour. With this, Root will be able to offer seamless digital buying experiences for the customer by marketing directly to drivers in the exchange.
Verisk is a hub for connected vehicle and connected home data which helps personal and commercial insurers improve their ratings, and loss mitigation services.
Root chief corporate development and strategy officer Kumi Walker said, “We’re excited to be one of the first insurance carriers in the country to provide an immediate discount to safe drivers based on the historical driving data coming from their vehicles.
“The Verisk Data Exchange lets us use data from a variety of automakers to provide the deepest discounts for car insurance to the safest drivers.
“Root’s best-in-class mobile insurance application lets the consumer opt in to sharing the car’s driving history and provides a quote to the customer within seconds.”
Root uses a driver’s smartphone to determine how well they drive and then use the data to determine a personalised insurance price.
Earlier in the week, Root Insurance bagged $350m in a Series E round which would value the company at $3.65bn.
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