With connected shared cars comes more utilisation and more data that, used properly, can be very powerful.
More than 50% of Hiyacar bookings are made with QuickStart cars which incorporate Hiyacar’s keyless technology.
These vehicles are closely managed throughout their booking and use cycle with liveness detection and facial recognition on pick-up of the car and during bookings, encrypted digital keys that are only valid on one device, GPS tracking, mileage and fuel usage.
The technology uses LE Bluetooth at short range to stop jamming.
The vehicles can be remotely locked and unlocked – including arming the immobiliser – and digital keys can even be revoked if necessary.
While this appears to manage risk, it’s not all plain sailing.
Hiyacar was recently forced to switch insurer because it was hard for the insurer to understand how to apply the data.
Hiyacar COO Rob Lamour says: “We studied to see how we can prevent claims and bad behaviour and use this data to effectively underwrite over the top of our insurance policy.
"The impact was clear. By managing risk using traditional and non-traditional methods, we were able to reduce our claims ratio to as low as 15%.
“But our insurer, using its traditional rating factors, priced our premium so uncompetitively that it was, effectively, subsidised by the business. This is not a sustainable model.
"We decided to reject renewal terms and stop trading to find another provider whose thinking was more aligned with ours.
"We refused to be held ransom by market pricing and wanted to keep true to our values of creating a sustainable business.
“Insurers generally look backwards to calculate risk whereas new companies that are doing something different need to look forwards.
"If we want to change mobility there is a need for ‘fit for purpose’ policies, not repurposed ones.”
This shows connectivity has not yet permeated the whole industry.
“We are not yet at a point where the insurance industry can fully understand asset-based risk even in this connected market,” says James Cartwright, managing director of gap insurer Direct Gap.
“As we see more vehicle sharing and the new flexibility that connected vehicles can provide, adapting existing models will be tricky”.
Read the full feature on How connectivity is changing the motoring game from the Smart Transport Journal