Insurance Edge caught up with Adam Gooch, UK Director of Insurance at Targa Telematics, to find out more about integrated data and how it can offer deeper insights for insurers and brokers alike.
IE; It’s almost the end of another BIBA Conference, how has the event been for Targa Telematics and what new products has the company launched here?
AG; BIBA has been really good for Targa Telematics; it’s been great to make lots of new connections. This event has been about making progress in the UK market because although Targa Telematics is a well-known big company, it wants to do more in the UK Insurance market. This has been our first stand at the BIBA event, and we wanted to raise our profile and meet new connections, whilst catch up with existing clients and contacts.
IE; Have to admit I’m not that familiar with Targa.
AG; Basically, Targa Telematics helps insurers make better use of connected-vehicle data. Yes, we can provide all the components that best suit the customer’s project, but we are much more than just a device or data supplier. Our role is to bring together data from different sources – including OEM devices, aftermarket devices and other telematics signals – and turn them into consistent, validated and insurance-ready information. A thing I’d like to stress is our unique experience and proven capability in managing OEM data for over a decade: this allows insurers to access new insights that reinforce traditional insurance use cases and empower innovative UBI projects.
IE; That is a huge advantage in terms of servicing records, original vehicle or model spec, factory or pattern parts being fitted – all that good stuff.
AG; The data is really rich, yes. But richness is useful only if it is made consistent, audible and actionable. That is where Targa Telematics adds value: transforming multiple raw data signals into structured information that underwriting, actuarial and operational teams can actually use. The company works across more than 20 OEM brands and a number of telematics data sources such as aftermarket devices, OBDs, app/tag and more. They are all fully integrated in our ecosystem, allowing us to provide insurers with a consistent output. But the right solution always depends on the insurer’s goal: pricing, renewal support, claims, theft recovery, risk management or customer engagement. It’s really about offering flexible choices, and how the insurer can / wants to use it.
There’s lots of different uses way beyond tracking younger drivers’ miles, speed, location etc. Take vehicle thefts, Targa Telematics can enable live theft tracking on standard car policies using OEM data. The company can assist on the tracking of the vehicle when that incident happens. If there’s a sensor in the vehicle then that can be activated, and law enforcement or asset recovery can search for and recover that vehicle.
IE; That’s a great feature and interrupts the chop shop theft model.
AG; Yeah and it’s a development that isn’t traditional telematics but offers a huge benefit to insurers. Targa Telematics is the largest TSP in Europe and has lots of experience in the EU market and there are lessons to be learned in terms of live tracking.
IE; That is a great selling point for a broker isn’t it; you don’t have to take out a monthly tracker subscription, instead there’s a Targa Telematics feature which will kick in if a theft is reported.
AG; Absolutely. Another useful point is that on vehicles under 3 years old there’s no MoT history, but we can tell you what the mileage is on a fairly new car, and the service history too. For insurers it’s great to know the monthly miles that are being covered, the level of wear, the increased risk in terms of mileage, because they might have a different number of miles on the initial quote.
IE; One thing that has held back telematics has been the dreaded black box, and even the cig lighter device plus app isn’t popular. Is tech resolving those issues?
AG; It is and the way that can happen, the way we can get to genuinely data driven policies, is by integrating the OEM data with the insurers data sets. That’s the evolution from traditional telematics, no downloading anything, just consent when they buy the policy. That’s the way forward.
IE; Data gathering running in the background is something most of us don’t notice. It lets insurers get away from postcode and occupation pricing.
AG; Definitely, what’s happening on each journey is a more accurate summary of the risk. That said, I would not frame it as OEM data simply replacing devices in every scenario. The market is becoming more flexible. In some use cases, connected-vehicle data can reduce friction because the driver/customer does not need any additional device. In others, in-car devices still bring benefits: some fleet policies might work better with devices assigned to each driver, because of data frequency, control, operational reliability or specific services such as theft recovery.
IE; I can see how a delivery policy might work better with the driver, vehicle and each postcode’s data all integrated. So, you know if a location on the drop route has a history of thefts from vans, various bumps or accidents etc.
AG; Yes, adding layers from different sources is the key. Plus, every data supplier is offering an improvement in accuracy, in granular insights, as technology develops. But it’s important to bear in mind that OEMs are in the business of selling cars and vans, not gathering data and sharing it with insurers. This is where Targa Telematics can act as a bridge between the two, because insurers have different objectives from manufacturers of course.
Consider that currently OEMs provide data in different formats and with different quality standards. Over time, we expect that the level of data detail that Targa Telematics can collect within the platform will be so good that aftermarket devices won’t be necessary in most vehicles for most use cases. But it’s important for insurers to start from the business problem they need to face and not just focus on a technology.
IE; Maybe digital ID, the face scan login that Companies House is now requiring, will spread to commercial fleets, so each driver logs in via a tiny camera at the wheel, then there are no arguments about who was driving that day?
AG; Yes, driver identification is a very important feature in some specific industries. Most of the times an RFIS reader serves the scope, but face recognition is perfect for example airport service vehicle drivers, where one incident can cancel several flights and take a plane out of service because the wing was clipped. In fact, Targa Telematics is also one of the largest providers of telematics solutions for the aviation market and has developed a similar project in collaboration with a very popular ground handler. If an incident occurs you have to know about it immediately, how it happened, who was driving. That data can also help streamline the claims process too.
So, at BIBA Targa Telematics has been showcasing case studies like that, offering solutions to all types of insurers and brokers. Demonstrating the advantages of using data to underpin risk, no matter what vehicle it is.
IE; Interesting stuff, Adam thanks for your time.
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