Connected cars – Otonomo delivering telematics data to insurers
RegionAfrica & Middle East
In View Summary
Founded in 2015 in Israel, Otonomo is a cloud-based data exchange platform that effectively enables car manufacturers, drivers and service providers to be a part of a connected ecosystem. It creates a marketplace of car data that service providers and 3rd party applications can tap into.
The company operates in the US, Europe, and Japan. To date, it has received US$40mn in funding and is rapidly growing with 55+ employees. Currently, it is engaged with nine car manufacturers including Daimler and other automakers in Japan. It has also partnered with a telecom giant NTT in Japan which has provided it US$3mn in funding.
Otonomo creates a marketplace of car data that service providers and 3rd party applications can tap into
Powered by Microsoft’s Azure platform, Otonomo pulls 20-500 data points per minute from individual cars which is then made available to emergency services, parking apps, insurance companies, smart cities, financial firms, retailers, car dealerships and many other organisations.
Otonomo’s technology allows for easier distribution and use of connected-car data
Additionally, insurers are one of the earliest buyers on Otonomo’s marketplace. Helping insurers to charge low premiums to drivers willing to install data-reading hardware or download data-tracking apps. They also incentivise them for their good driving behaviors.
Kevin Tynan, auto analyst at Bloomberg Intelligence has said “the strength of this approach is that Otonomo itself doesn’t monetise the data, they merely gather, aggregate and process it. And there will be more and more of it as the industry tries to achieve profitable self-driving and ride-share business models.”
Ultimately, Otonomo’s technology allows for easier distribution and use of connected-car data by securing, anonymising, standardising and aggregating information within the limits of regional regulations.
Benefits to customers
Reduced turnaround time
Benefits to insurers
Improved customer engagement
Reduced processing costs and time
The Digital Insurer's View
The auto insurance segment is undergoing a systemic shift with the onset of semi and fully autonomous vehicles now a reality. With companies like Tesla entering into the insurance industry, traditional insurers will need to either partner with InsurTechs who have relevant expertise, or develop solutions internally – and companies like Otonomo help in providing connected car data which can be leveraged by insurers to innovate new products and services with new pricing features and incentives.
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