Insurtech Previsico and Zurich partner on flood resilience
The two companies will join with a third (currently anonymous) entity to execute the project.
Launched in 2019 as a spinout company from Loughborough University, is the product of more than 20 years’ worth of academic research, with support from the UK Cabinet Office and Met Office, among others.
So far, Previsico has fully mapped the UK, parts of the US, and has plans for further expansion in the Asian market following the opening of its Hong Kong office.
Enhancing insurance with technology
The need for greater flood resilience in the insurance market has been made clear by the effects of , which Previsico uniquely forecasted. Surface water flooding in the UK, for example, affects over three million people per year.
“We are excited to work on this pilot with Previsico and our exceptional customer with their sophisticated flood risk management team and processes,” said Jonathan Newbery, Head of Digital Experience at Zurich.
“The insights we gain from this tripartite experience will help us to better understand how we can support our commercial customers on critical issues like flooding, using innovative and digitally enabled approaches like Previsico’s.”
Previsico’s solution will also feature visualisation tools to boost understanding about affected properties and people. With natural disasters causing over , a 40% increase on 2019’s figure, insurers will need every advantage available to tackle increasingly destructive environmental factors.
Jonathan Jackson, CEO, Previsico, commented: “We are delighted to collaborate with Zurich and their major corporate customer, one of the biggest household names in the UK, to pilot our unique live flood forecasting solution on a commercial basis.
“This will help to reduce the impact of surface water flooding, including the huge cost and waste of reliance resources caused by current inaccurate early warning systems for surface water and small watercourse floods.”
Video source: Previsico
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that by expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
1.It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
2. The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales and speed of vehicles.
3. It improves driving standards and monitors driver behaviour, minimising detours and ensuring responsible driving.
4. It helps fleet health and maintenance by monitoring the health of operational vehicles.
5. It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.