Tom Yates, one of the founders of Telematic, Inc. used to work for a large insurance carrier and helped design their usage-based insurance program. This is where he identified the need in the market for a smart phone app that can provide this kind of service. After coming up this this idea, he went home and built the application for a year. Marti Ryan was the CEO/COO of a technology market research and consulting company that focused on millennials. They met at a networking event, and together they have built Telematic into what it is today.
Telematic is a Software as Service Platform that creates personalized pricing models, so that clients only have to pay for what they actually need and use. Their product is a white label, and can be branded for the individual client. They are able to easily adapt the software to the client's needs and integrate the applicable features. For example, a client can customize the app to track driving history only, or to keep track of their policyholder's car health and maintenance. Another option is to use the application for safety purposes. For clients looking to have the software provide data about the behavior of customer's driving and their mobile phone usage, they can price their premiums off of this. The customer's mobile phone usage includes phone calls and texting, and even how much they look at their phone while driving. After all this data is collected each policy holder will get a driving score, much like a credit score, which the insurance company can use as a rating for how good someone is driving. All of these will then factor into the premium costs for customers, and can either increase or decrease their rates. Rates can fluctuate on a day-to-day basis or month-to-month depending on the client's needs. Currently they are in the beta stage of their product life cycle, and are in the process of securing paid pilots. They are ready to go to market now, and will begin securing early adopters of this product.
Consumers who do not use their cars very much or have good driving histories, are looking for pay-as-you drive insurance plans, like the ones that Telematic is hoping to partner with insurance carriers to provide. This application can assist those consumers by offering a more accurate way to rate their driving behavior, and monitor how many miles they are actually driving on a week-to-week or monthly basis. This can give consumers a significant amount of savings.
Some of the things that differentiate Telematics from other solutions are their ability to price premiums off of the lifestyle behaviors of the carrier's customers. Together Marti and Tom have an extensive background in insurance, which gives them another advantage. Their ability to use real-time data is what really sets them apart from competitors, and increases their ability to better price usage-based premiums. By creating this application, they are able to base a policy off of an individual person and not an object, which seems to be an increasing trend in the future of auto-insurance.
They are looking to partner with small to medium sized regional auto insurance companies to implement their application that is capable of capturing real-time data. They will license their software to the partner to use. In the future, they hope to solve new problems for their clients, and find new applications for their technology in data and predictive analytics. They want to get into driver-less cars and specialize in software, data collection, analytics, and transportation in this market space.
The Global Insurance Accelerator has helped them reach their initial target customers, and given them the mentoring and resources for future growth and business development. The network that they have accessed has been one of the most beneficial resources provided by the accelerator, and include people in insurance companies, as well as mentors. All of this has helped them accomplish their goals, and cut down their learning curve by two to three years.
Marti and Tom were apart of Global Insurance Accelerator’s Demo Day Pitches on Wednesday, April 27th (2016), at the Global Insurance Symposium in Des Moines, Iowa.
For this article, I interviewed Thomas Yates and Marti Ryan, Co-founders & CEOs at Telematic