InsurTech Motor Insurance Telematics Platform -- FCA ICOBS

Smartphone telematics

using iOS (CoreMotion) and Android (SensorManager) sensors to reconstruct driving behaviour.

Sensors used

• 1GPS (location, speed, trip reconstruction),
• 2accelerometer (harsh braking, harsh acceleration, harsh cornering -- g-force thresholds),
• 3gyroscope (lean angle, cornering),
• 4barometer (altitude -- motorway vs town driving),
• 5magnetometer (compass -- heading changes).

Sensor fusion algorithm

Kalman filter (combines GPS + accelerometer + gyroscope -- more accurate than GPS alone, works in tunnels and low signal).

Trip detection

automatic trip start/end detection (significant motion API on iOS, activity recognition on Android -- no battery drain from constant GPS when not driving).

Privacy

location data processed on-device first (edge computing) -- only driving score and trip summary uploaded, not raw GPS track.

FCA Consumer Duty for telematics insurance

• 1pricing fairness (telematics score must demonstrably reflect driving risk -- actuarial evidence required),
• 2score transparency (customer must be able to see their score and understand how it is calculated -- not black box),
• 3adverse score challenge (customer can challenge a score they believe is incorrect -- review mechanism),
• 4not disadvantaging demographics (telematics scoring must not produce demographic bias -- ICO AI fairness, Equality Act 2010),
• 5cancellation for poor scoring (if insurer cancels policy for poor telematics score -- Consumer Duty requires fair treatment, adequate notice, alternative insurance signposting).

PECR consent

• smartphone telematics requires explicit consent for location tracking -- granular consent (telematics scoring vs marketing).
• MID (Motor Insurance Database)

Integration

MID (Motor Insurance Database): DVLA mandate -- all UK motor insurance policies must be reported to MID within 30 days of inception.

MID API integration

• 1policy inception notification (new policy bound -- MID API POST within 24 hours),
• 2policy cancellation notification (policy cancelled -- MID DELETE within 24 hours),
• 3policy amendment notification (change of vehicle, change of named driver -- MID PUT),
• 4MID reconciliation (weekly MID report comparison -- confirm all active policies on MID),
• 5MID queries (DVLA enforcement -- if asked about a specific vehicle, MID query API).

MID compliance monitoring

CloudWatch alarm if MID notification queue (SQS DLQ) has more than 0 messages -- any failed MID notification triggers immediate alert.

ICO DPIA for Telematics

ICO DPIA (Data Protection Impact Assessment) mandatory for telematics: (1) Article 35 triggers (systematic monitoring of individuals -- telematics is continuous monitoring of driving behaviour and location), (2) special category data consideration (driving behaviour adjacent to health data -- dangerous driving may indicate medical condition), (3) legitimate interest vs consent (legitimate interest for core insurance purpose -- telematics needed to price and validate policy), (4) data minimisation (on-device processing -- only scores uploaded, not raw GPS tracks), (5) retention (telematics trip data retained for policy duration + 3 years -- actuarial analysis and claims evidence).

ICO DPIA outcome

telematics is high risk -- DPIA mandatory, ICO prior consultation not required if risks mitigated but DPIA must be documented and reviewed annually.