Q&A : OEMs Enter the UBI space—the Renault-Nissan case

TU Auto:As I recall from what you said last year, Renault-Nissan offers the insurance option as part of its R-Link service, and that it gives insurers the chance to access driver-related data for a fee, and that insurers can choose how much and which data to access for the telematics policies they offer. Is that accurate?

Le Merle: The Renault-Nissan customer equipped with the Alliance data acquisition solutions, via R-LINK or Nissan Telematics, will be able to use its equipment with the insurers that are in B2B relationships with Renault and Nissan. Once the customer has subscribed to a telematics insurance policy with an insurance partner, the insurer can remotely activate the vehicle and collect the data to operate its UBI offer. The subscription can be done at the point of sale if it is a Renault-Nissan insurance product, or directly if with another insurer. A predefined set of data has been made available to the insurers. In the short term, modifications are not possible.

TU Auto:Who initiates the insurance policy, the Renault-Nissan customer? Does he then select his preferred insurer from those who subscribe to the R-Link service?

Le Merle:Not exactly. The customer will be able to choose only a Renault PAYD or PHYD insurance policy at the point of sale. In this case, we are in a Business to Business, Business to Customer (BtBtC) relationship with the insurer chosen to run the Renault or Nissan insurance program. If he or she chooses directly another insurer who has signed a contract with Renault/Nisan for car-related data, the insurer will be able to activate the system remotely and collect the data to operate a PAYD/PHYD insurance policy for his customer. In this case, we will be in a BtB only relationship: Renault/Nissan sell data to the insurer and the insurer operates its own insurance product under its own brand and through its own distribution channels.

TU Auto:How many carriers have signed on to your insurance option?

Le Merle: We are in close discussions with most major insurance companies.

TU Auto:When was the insurance option launched?

Le Merle:Renault has launched one pilot in France on a small scale with one insurance company. The next Renault-Nissan initiatives are planned to be launched during the year 2015, with more than one other major insurance company.

TU Auto:Are you finding that having the insurance option available at the point of sale makes it more attractive to consumers, who might otherwise choose a traditional car insurance solution?

Le Merle:Yes, but only for Renault or Nissan insurance policy (B2B2C).

TU Auto:What are the benefits of offering telematics insurance at the point of sale for Renault-Nissan, other than monetizing the data? Does it make R-Link more attractive to consumers? What are the benefits for the customer?

Le Merle:The Renault and Nissan insurance product already brings specific advantages to Renault and Nissan customers. Marginal reach of data from line-fitted equipment of the vehicle shall drive accuracy up and overall cost down, making it an even more competitive Usage-Based Insurance offer.

TU Auto:Does Renault-Nissan have any other involvement in the insurance relationship besides offering the service and billing the carrier for the data?

Le Merle:Yes. With Renault or Nissan insurance, we are selling our own insurance in addition to selling the data to the insurance partners of Renault insurance.

TU Auto:Does the insurer access the car data remotely via a cloud or the Renault-Nissan service center?

Le Merle:This is via the Renault-Nissan Global Data Centre.

TU Auto:What range of data is made available to the insurer who chooses the most costly option?

Le Merle:Mileage, start and end of the journey, fuel consumption, number of braking events, high acceleration, safety features activation events.

TU Auto:Have there been any privacy concerns cited by Renault-Nissan customers regarding the data?

Le Merle:No. There is a contract signed between Renault-Nissan and the insurer, and the contract addresses these aspects.

TU Auto:Is the opt-in agreement regarding the data made between the insured and the insurer?

Le Merle:Yes. It is made between the customer and the insurer at the signature of the insurance policy by the customer.

TU Auto:Do you think offering insurance at the point of sale is a good way to get telematics insurance into the mainstream?

Le Merle:Yes. But the telematics insurance market shall be created by the major insurance companies.

TU Auto: Are there plans to upgrade the service?

Le Merle:Yes, in particular with eco-scores and Stolen Vehicle Tracking coming during 2^nd semester of 2015.

TU Auto:Is Renault-Nissan planning eventually to offer its own car insurance?

Le Merle:We already have Renault and Nissan Insurance programs and we plan to enrich the traditional existing offer with innovative products such PAYD/PHYD insurance.

For the latest update on insurance telematics take a look at Insurance Telematics Europe Conference & Exhibition 2015 (April 14-15th) in London.

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