The key to creating more balanced and fair pricing lies in data transparency and the ability to share and make use of data available; something that is now more achievable than ever.
Currently, insurers often rely on broad risk models to determine premiums, which means pricing can sometimes feel disconnected from individual driving habits and the actual vehicle conditions.
But what if insurers could offer pricing based on real-time, verified data that truly reflects how a person drives and maintains their vehicle? With access to this kind of detailed, real-world data, the industry can introduce a future of more personalized and transparent pricing, where safe driving is recognized and rewarded. This approach not only enhances fairness but also helps build greater trust between insurers and policyholders.
A Game-Changer for the automotive and insurance industries: Mandatory Event Data Recorders (EDRs)
What many don’t realize is that a major regulatory shift has already taken place, providing a potential solution to overcome this pricing challenge by basing pricing on validated data enhancing transparency, building trust, and creating a more sustainable model for both customers and the industries.
As of July 7th, 2024 a new EU regulation mandates that all newly manufactured cars must be equipped with an Event Data Recorder (EDR) - commonly known as a black box, similar to those used in airplanes. However, this legislation doesn't just apply to newly produced vehicles; it also extends to newly registered cars and light commercial vehicles across the EU.
These EDRs continuously collect and store crucial vehicle data, including:
Vehicle dynamics and driver inputs (e.g., speed, steering, braking)
Crash impact data (e.g., force of the collision, direction of impact)
Restraint system activity (e.g., airbag deployment, seatbelt usage)
In the event of an accident, this data is invaluable. Experts can reconstruct the sequence of events, determine the cause and impact of the crash, and gain insights that improve road safety, insurance assessments, and even vehicle design.
The only tricky part? Accessing and activating EDR data
While EDRs capture critical vehicle insights, accessing and utilizing this data for insurance pricing and claims processing comes with two major challenges:
Technical Barriers: Retrieving EDR data requires specialized equipment that connects through the OBD interface - a process not readily available to insurers.
Regulatory Hurdles: Under GDPR (General Data Protection Regulation), accessing and processing this data is highly restricted, often requiring legal authorization or even a court order when collected through traditional means.
Without a compliant and efficient way to access and utilize this data, the full potential of EDR insights remains locked away, leaving insurers with imprecise pricing models.
A fully compliant digital infrastructure for secure data access and sharing
By leveraging a secure, privacy-first data-sharing platform, insurers and automotive manufacturers can access and utilize EDR data without compromising privacy regulations.
At Partisia, we provide the digital infrastructure that makes this possible - ensuring compliance, security, and efficiency every step of the way.
But access is only part of the solution. Partisia Confidential Computing takes it a step further, enabling insurers to not only retrieve data but also analyze it securely. Using Multi-Party Computation (MPC), we allow secure computations on encrypted data, ensuring that no one - neither insurers nor manufacturers - ever sees the raw data itself.
Instead, they only receive the results, allowing them to make data-driven decisions possible without compromising privacy.
To further enhance transparency and trust, Partisia's public blockchain adds an extra layer of traceability and accountability.
This ensures that insurers, car manufactures, and even individual vehicle owners can access verified, tamper-proof records, fostering greater confidence in the data used for premium pricing, claims, and beyond.
Our digital infrastructure includes:
Partisia Blockchain: A public, neutral platform that gives users full control over identity, ownership, and data activation.
Partisia Platform: A private industry network, built to comply with GDPR "data processor" and "data controller" requirements, enabling secure, privacy-preserving data sharing.
Together, these platforms create a trusted and compliant ecosystem, allowing insurers to harness the full potential of EDR data while maintaining the highest standards of security and regulatory compliance.
The future of insurance is data-driven
The automotive and insurance industries are looking into an opportunity for a major transformation, one that rewards transparency, fairness, and innovation.
By activating EDR data in a compliant, privacy-preserving way, insurers can move beyond traditional calculation methods, ensuring accurate pricing, lower fraud rates, and better risk management.
Ready to lead the industry into this new era of data-driven insurance?
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