DLG makes ‘bold statement’ by adopting app-only telematics product says The Floow boss

In September, insurer Direct Line Group (DLG) partnered with global telematics business The Floow to offer its app-only telematics product, DriveXpert, to its Privilege brand policyholders – The Floow’s founder and chief executive Aldo Monteforte labelled this move as “a bold statement”, adding that the partnership “feels very much in sync with [DLG’s] historical propensity for innovation”.

DriveXpert mitigates the need for a traditional black box telematics device to be delivered to policyholders and then installed into vehicles by instead having users download a smartphone app, which acts as a mobility sensor.

This then evaluates and scores policyholders’ driving, any mobile distractions, road risks, vehicle speed and the time of day.

This data informs the company’s FloowDrive platform, which then calculates scores based on policyholders’ driving behaviour. Ultimately, this can help them attain premium discounts as well as receive feedback on their driving style in order to improve and become better drivers.

For Italy-based Monteforte, The Floow’s app-only solution stems from three key drivers: simplicity, efficiency and immediacy. He believes the system is simple due to the fact a separate, physical device is not needed and there is then no hassle with delivery and installation.

In terms of efficiency, this comes down to generating “good quality data about [the] mobility patterns of an individual”, Monteforte said. Uniquely, DriveXpert can also gauge how distracted drivers are by their mobiles while out on the road, for example if they check their phone or make phone calls.

This is “a very, very powerful predictor of claim propensity”, he added, which is why the app proceeds to warn users about the dangers of distraction when driving, if this trait is identified.

Lastly, immediacy refers to “that immediate interaction with the end user through the app itself”.

Multiple devices

Despite the innovation around DriveXpert and app-only telematics, Monteforte emphasised that “no device is perfect” and so a range of telematics solutions will always be required to satisfy market demands.

He said: “For example, some carriers will have a mandate, regulatory or other reasons, to only collect data from the movement of the vehicle. When that mandate is in place, [a] box is a better option than a smartphone.

”Or another situation is when a carrier would like to provide a stolen vehicle recovery service. Clearly a smartphone is not suited for that functionality. We will continue to see a fair amount of diversity into the marketplace.”

However, Monteforte still believes “we will witness the increasing penetration of smartphones as sensors. Insurance carriers will have a [good deal] of choice in the optionality when it comes to data collection for connected products”.

Ahead of the curve

For The Floow, Monteforte said the business will continue to launch its products with insurance companies and that it has “more of this in the pipeline”.

Furthermore, the insurtech is also working on new products and functionality, such as enabling “the smartphone [to] detect serious crashes and initiate FNOL and emergency processes if necessary” – this development was announced earlier in the year.

“There will be more of this coming along as we try and keep The Floow at the frontier of this space,” Monteforte concluded.