Why Not a Bot? Adjuster Bots for Connected Cars

Why Not a Bot? Adjuster Bots for Connected Cars

We’re not quite there yet. But there is a path to get there—probably in only a few years.

We’re already at the point where fender bender claims can be estimated with a set of smart phone photos (offered by esurance and many other carriers)

But what more serious accidents which involve damage to a car’s mechanical systems? 

Here is one element of an Adjuster Bot solution: electonic control units, ECUs. For years, automobiles have been manufactured with dozens ECUs which control, monitor, and diagnose a broad away of systems within the vehicle, including its engine, power train, brakes, steering, airbags, electronic stability control. Information from ECUs can be accessed from vehicle’s On-board Diagnostic Port (OBD-II). The primary purpose of the OBD-II is to enable maintenance and repair of the various systems. (Telematics devices–aka dongles–plugged into the OBD-II port have been the primary method to gather and transmit telematics data to insurers.)

A second critical piece of the puzzle falls into place: communication. Automobile manufacturers are racing towards creating connected cars—typically using 3G or even 4G LTE cellular modems.

So this is what an automobile Adjuster Bot ecosystem would look like:

  • A cellular modem which tells the Adjuster Bot that an accident has occurred
    • And transmits data from ECUs describing the functional/non-functional status of major car systems
  • The AI-powered Adjuster Bot which, through deep learning, identifies the probability of repairing or replacing components within those systems; and which:
    • Alerts police and/or medical assistance as warranted (e.g. if airbags deployed)
    • Queries repair estimation and total loss systems
    • Integrates with the insurer’s Direct Repair Program
    • Creates an initial estimate of cost and time to repair
    • Presents a customized video to the driver, describing:
      • Arrival of tow trucks, transportation to a rental car facility, the split of insurer and policyholders financial responsibility; links to download a claimant app

Next up: Adjuster Bots for Connected Homes

What happens when auto manufacturers stop giving away valuable telematics data for free?

What happens when auto manufacturers stop giving away valuable telematics data for free?
Here’s a thought experiment. Imagine that you manufacture some things – let’s call them automobiles. And imagine that in those automobiles you’ve installed bunches of computer systems to control steering, braking, transmission, engine performance, and even record GPS-determined locations. Let’s call these computer systems electronic control units (ECUs). And imagine that these ECUs generate streams of data that are potentially highly valuable to organizations that are interested in how safely a given automobile is being operated. Let’s call these organizations insurance companies. And imagine that one day, a really smart person at an insurance company had the great idea that if they could capture and analyze these streams of data, they could understand automobile risks in a way that would let them price and underwrite auto insurance in a much more accurate and profitable way. Let’s call that person Flo. And let’s say that Flo realized that the automobile manufacturers had kindly provided a little port thingy that allows her to access all this valuable and data and transmit it to her insurance company without paying the automobile manufacturers a single penny! Let’s call these port thingys OBD-IIs. And let’s say that Flo and her counterparts at lot of other auto insurance companies go a little crazy giving their policyholders little whats-its that plug into the OBD-II thingys. Let’s call the whats-its dongles. But the really great thing is that the automobile manufacturers are still not charging Flo and her peers a single penny. And let’s say that the automobile manufacturers, one day decide that this internet mobility thing is here to stay, and that it could be a really great way to deliver more value, and deepen their relationships with the people who buy their cars. And to do all this stuff, the automobile manufacturers are going to make cars that connect to the internet! Let’s call these kinds of cars, connected cars. And lastly someone at an automobile manufacturer says, “Oh Dear Dearborn” or “Oh Cool Cupertino” “We could make a bundle of cash by taking a big slice out of the increased profit margin that Flo and her friends have created by charging them very large fees to get access to the ECU data. Or better yet, we could hire some actuaries and data scientists and enter (or re-enter) into the auto insurance business ourselves—and Flo can go make a big bet on smartphone-based telematics.” Ok, so here’s the thought experiment. If your were an investor, named Warren, looking for a growth stock, would you invest in an auto insurance company?