Automakers could use vehicle data to compete with auto insurers

The big picture: Connected vehicles generate huge amounts of vehicle usage data. 

• Real-time data is already becoming a new currency for insurers, impacting the way the $558 billion industry works.
• But this change also creates opportunities for new insurance technology start ups and automakers to get into the insurance space.
• Insurance tech companies raised $3 billion in investment in the first half of 2019, money that will likely advance in-house OEM insurance.

How it works: This influx of data creates a new era in insurance because, fundamentally, insurance extrapolates from historical data to create risk models.

• Real-time data collection can accelerate the building of those risk models for emerging mobility technology, like AVs and electric scooters.
• The breadth of data available also allows for more insightful risk modeling.

Between the lines: Tesla's move reinforces the idea that OEMs could begin providing their own insurance.

• Yes, but: This could prove a challenge for companies long dedicated to "bending metal."

What we're watching: In addition to offering insurance, this influx of data could be leveraged by suppliers to protect users in new ways. 

• Eventually, navigation guidance could recommend a route where accidents are less likely to occur during rush hour.
• Leveraging traffic, weather, and other data can protect fleets, equipment, and especially people, which would reduce risk and lower insurance costs.

Ian Sweeney is the GM of Mobility at Trov, an insurance technology company.

Details: The CX-9 Signature, which is their $45,365 top-of-the-line model, feels like a luxury car, with heated and cooled Nappa leather upholstery, rosewood trim and LED accent lighting.

• It features a 250-hp, 2.5-liter four-cylinder turbo engine paired with a 6-speed automatic transmission that gets 23 mpg in combined city/highway driving.
• As with other Mazdas, the CX-9's ride and handling set it apart from the competition, hugging the road on tight curves instead of that tippy feeling you get in most 3-row SUVs.
• The CX-9 has a superb head-up display and offers a full suite of active safety features, including blind-spot monitoring and lane-keeping assist as well as adaptive cruise control with stop-and-go capability in traffic.

The downside: If you've got a big family, the CX-9 isn't as roomy as other 3-row crossovers like the Honda Pilot, Volkswagen Atlas or Kia Telluride.

• And while Apple CarPlay and Android Auto are now standard, you still have to use Mazda's center console knob to control the screen while driving. It's a safety decision, I know — touchscreens are incredibly distracting while driving — but it's still annoying.

The bottom line: The Mazda CX-9, starting at $32,280, is a family car you'll enjoy driving.

Background: The Smart Summon feature is part of a software update Tesla released last week for its vehicles.

• Using their phones, drivers can call their car from a nearby parking space to pick them up.
• CEO Elon Musk tweeted that Tesla owners used the Smart Summon feature 550,000 times in the first few days.
• Some of them posted videos on social media showing near-accidents, with one car hitting a garage and others blocking traffic in crowded parking lots.

What they're saying: In response to media inquiries, NHTSA said it “is aware of reports related to Tesla’s Summon feature. We are in ongoing contact with the company and we continue to gather information. Safety is NHTSA’s top priority and the agency will not hesitate to act if it finds evidence of a safety-related defect.”

My thought bubble: Without any clear regulations on automated vehicles, the NHTSA needs to crack down on beta-testing such features on the public.

By the numbers: AAA tested four 2019 mid-sized sedans equipped with pedestrian detection systems (Chevy Malibu, Honda Accord, Tesla Model 3 and Toyota Camry) with adult- and child-size dummies and found...

• In daylight testing, the cars traveling 20 mph struck adults crossing the road 60% of the time.
• At night, none of the systems detected or reacted to the adult pedestrian, an alarming result considering 75% of pedestrian fatalities occur after dark.
• When turning right and into a crosswalk, the cars hit the adult pedestrian every time.
• When encountering a child darting from between two cars, the test vehicle traveling at 20 mph hit the child 89% of the time.
• At over 30 mph, the systems failed every test.

The bottom line: Like most assisted-driving technologies, pedestrian detection systems have not been perfected and drivers need to pay attention.