Project Overview
A UK Managing General Agent (MGA) writing motor insurance for 28,000 policies via a telematics-based pricing m...
Technology Stack
Compliance & Standards
The Challenge
A UK Managing General Agent (MGA) writing motor insurance for 28,000 policies via a telematics-based pricing model (pay-how-you-drive) wanted to rebuild their legacy telematics platform — which used a proprietary OBD device. The new platform needed to use smartphone telematics (iOS/Android — eliminating hardware cost), process 420 million driving events per month, FCA ICOBS consumer pricing transparency, UK GDPR for driver behaviour data, and ICO guidance on employee monitoring (for commercial fleet products) were the requirements. Budget: £130,000.
Our Approach
Telematics SDK
Arity (Allstate subsidiary) SDK for iOS (CoreMotion, CoreLocation) and Android (Sensor Fusion API).
Events captured
trip start/end, speed (GPS), acceleration/braking (accelerometer), cornering (gyroscope), phone usage while driving (screen on/off, gyroscope).
Privacy
ICO guidance — driver monitoring data is sensitive personal data even if not special category.
Legal basis
contract performance (telematics policy is based on driving data).
GDPR
- driving data retained for policy term + 7 years (FCA record-keeping), then deleted.
- High-
Volume Telematics Data Pipeline
420 million events/month = 140,000 events/minute at peak.
Architecture
mobile SDK → AWS Kinesis Data Streams (partitioned by policy ID) → Lambda (event processing + trip assembly) → DynamoDB (trip records) → S3 (raw event archive).
Trip scoring
Lambda + SageMaker (ML model — driving score 0–100 from speed, acceleration, braking, cornering, time-of-day, distance).
Scoring latency
trip score available within 5 minutes of trip completion.
ICOBS 6
price for telematics product must be clearly explained — how driving score affects premium.
Pricing dashboard
driver sees their score, component breakdown (speed 30%, acceleration 20%, braking 20%, cornering 15%, time-of-day 15%), and projected renewal premium based on current driving.
FCA Consumer Duty
value assessment — telematics pricing must demonstrate fair value vs standard non-telematics premium (telematics driver with good score must achieve meaningful discount).
Mileage fraud
- GPS mileage vs declared mileage at policy inception — automatic flag if >
- 20% discrepancy.
Trip spoofing
accelerometer pattern analysis detects plugged-in phone vs carried-in-vehicle (different vibration signature).
FCA Consumer Duty vulnerability
- if driving score suddenly deteriorates (job loss, illness causing changed driving patterns), flag for underwriter review rather than automatic cancellation.
- Policy mid-term adjustment: driving score below threshold → automated letter with required improvement period before renewal consideration.
The Results
Platform live at 18 weeks, £118,000 — under budget.
OBD hardware cost eliminated: £42 per policy saving → £1.17M annual saving across 28,000 policies.
Telematics data processing: 420M events/month, p95 trip scoring latency 3.8 minutes.
Mileage fraud detection: 340 flagged policies in first 6 months.
FCA ICOBS pricing transparency review: confirmed compliant.
Policy retention (good drivers): 84% vs industry benchmark 71% — telematics creating loyalty.
“£1.17M annual saving from eliminating OBD hardware. 84% retention for good drivers versus 71% industry benchmark — telematics creating the loyalty we expected. 340 mileage fraud detections in 6 months. FCA pricing transparency review confirmed compliant on first submission." — CEO, UK Motor Insurance MGA (name withheld)”
Project Details
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