RAC and insurance and telecoms technology company Quindell today announced a new joint venture company named Connected Car Solutions Limited, to create a new telematics insurance product, branded by the RAC, for its 2.5 million members.
With an initial £30m investment, the two businesses have jointly developed a product based on Quindell's ingenie car insurance product that enables both driving behaviour tracking (to enable cheaper insurance premiums for young drivers) and automatic breakdown recovery services.
In future, game based technologies using mobile apps and web services are promised to enhance driving behaviour are promised.
ingenie uses a black box telematics product
ingenie uses a black box (connected to the car's diagnostic port) to assess driving style, so enabling drivers to receive a discount on insurance premiums.
The black box records speed, acceleration, braking, cornering and usage. It also collects data relating to the type of roads used and the car's GPS location (to help the police to recover the car if it is stolen).
The ingenie box is a self-contained unit the size of a smartphone that includes a black box telematics device used by ingenie; a GPS unit which captures when and where the car is driven; a high frequency motion sensor which captures how the car is driven; and a SIM card which is used to transmit the data.
ingenue offers feedback on driving style via the ingenie mobile app or online, to help lower the cost of car insurance.
According to ingenie, 50% of its customers could earn a £300 discount.
Deal will enable the RAC to give its members the benefits of state-of-the-art telematics technology
RAC chief executive Chris Woodhouse said: “We have created a joint venture business which will ensure that RAC telematics is at the fore of insurance and motoring innovation and a financial deal which will enable the RAC to give all of its members the benefits of state-of-the-art telematics technology.
“In so doing we believe that this will deliver substantial benefits to all drivers, but particularly to younger drivers, by allowing them to monitor and modify their own driving behaviours with a view to reducing their insurance premiums as a result.”
But our next generation app will feature additional benefits such as more detailed driving feedback and scores, location based services and the ability to connect and compare driving with friends and family.
Largest telematics rollout globally
Fareham, Hampshire based Quindell - a provider of software, consulting and Technologies, mainly in insurance and telecommunications - described the deal as having "potential for largest telematics rollout globally".
Quindell acquired ingenie in February this year.
Quindell also has an 85% stake in Himex, that offers a game-based 3D virtual world to enable carriers to create "fun, engaging customer experiences" designed to improve driving behavior.
Founded in 2010, HIMEX has headquarters in Scottsdale, AZ and offices in London.
The company said a RAC branded telematics product will be offered to its 2.1 million members in July 2014, with a target of 10 million paying subscribers overall.
In addition, potential use of Connected Car Big Data from Himex Digital World will enhance the product.
RAC Driver Score, RAC Journey Score and RAC Care Score
Quindell, Himex and ingenie, through Connected Car Solutions will work with the RAC to develop a connected car RAC Driver Score, RAC Journey Score and RAC Care Score feature within the Himex Digital World technology. RAC members who choose to opt in to this RAC Score feature will, through the Himex Digital World Technology, be able to see the savings they could generate by switching their insurance to telematics.
Using a mobile app customers will get detailed feedback to help improve their driving and reduce the price of their insurance. Customers can also opt in to share data with friends and family
And in the event of a breakdown, the RAC will be able to automatically detect the problem with the car and send out the appropriate resource to assist, saving time and improving the safety and efficiency of the service.
The joint venture will provide enhanced breakdown services to RAC members, including remote diagnostics and progress updates for customers who have requested assistance
Connected Car Solutions will trade as both Quindell Connected Car Solutions and RAC Connected Car Solutions. The Quindell brand will primarily be used for existing insurance relationships, and the RAC brand, which has been licensed to Connected Car Solutions, will be used primarily for fleet, and consumer relationships.
The RAC version of the product will be sold from July in the UK, Europe and Canada.