• Insurers Aim to Use New Technology To Make Cars “Marketing Machines”
  • June 24, 2016
  • Law Firm: Eversheds Sutherland (US) LLP - Washington Office
  • Modern cars capture vast amounts of information about drivers through various computer technologies, tracking where drivers are going, when, and how they are driving. A new study from McKinsey and Company suggests that the future of car insurance lies in harnessing that data: by collecting and analyzing data collected from drivers, car insurers could turn the car into a “marketing machine.” As insurers face a future with fewer accidents, whether through crash-avoidance systems or autonomous vehicles, the McKinsey study states that insurers may seek to sell customer driving data as an alternate revenue source. Insurers have a distinct advantage in the data market—millions of drivers already provide reams of data to their insurer through “telematics” programs, and the insurer generally owns that data. Whether drivers have a right to know what the insurer knows is uncertain, and is up for review in front of certain state regulators.