Insurers To Use Mobile Phones To Track

A new usage-based insurance (UBI) software platform will enable insurers to track drivers’ behavior through smartphone sensors and geolocation services.

Agero, one of the nation’s largest suppliers of roadside safety software and services to automakers and insurance companies, said its new UBI telematics suite will transmit to insurers the information needed to offer discounts to good drivers, penalize others, and send alerts to emergency assistance service providers.

The UBI suite consists of the PolicyPal app, which tracks driving habits in real time, and Auto Crash Notification (ACN), which automatically notifies emergency services within moments of an accident.

Currently, State Farm’s In-Drive and Progressive’s Snapshot program, offer customers the opportunity to voluntarily participate in programs in which their insurer collects vehicle data and uses the information to determine driving habits, which in turn can be used to offer lower-rate incentives to safer operators.

Unlike Agero’s new platform, however, In-Drive and Snapshot, use a small data collection device that plugs into a vehicle’s standard OBDII onboard diagnostics port under the dashboard and transmits data from a car’s central computer to insurance companies.

Agero’s new mobile suite will greatly expand upon the universe of consumers who can vie for “discount rates” based on their driving profiles. The mobile device also travels with them in or out of the vehicle.

Over the past decade, the insurance industry has been embroiled in a heated price war, with companies vying to be king of the heap for discount pricing.

“It’s becoming a cutthroat market. They’re competing on price,” said Jeff Blecher, senior vice president of strategy at Medford, Mass.-based Agero. “To break that mold, they need a new business model. UBI does that. Now, they can compete based on the risk profile of drivers.”

UBI offers the insurance industry new opportunities for tailored discount programs. Notably, they can switch from relying OBDII dongles plugged into the customer’s car and instead use mobile apps that travel with the driver, whether he’s traveling in his own car or another vehicle.

“We want to align our strategy… with the smartphone as primary data collection point,” Blecher said.

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Google Goes Pay To Track

Amid widespread concern about its new privacy policies, Google is now facing additional criticism over a deal to offer users Amazon gift certificates if they open their Web movements to the company in a program called Screenwise.

Google says the program launched “near the beginning of the year,” but the company’s low-key offer was disclosed Tuesday night on the blog Search Engine Land.

Google is asking users to add an extension to the Chrome browser that will share their Web-browsing activity with the company. In exchange, users will receive a $5 Amazon gift when they sign up and additional $5 gift card values for every three months they continue to share. (Amazon is not a partner in the project.) Users must be over age 13, and minors will need parental consent to participate. The tracking extension can be turned off at any time, allowing participants to temporarily close their metaphorical shades on Google.

The company says the program will help it “improve Google products and services and make a better online experience for everyone.”

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Kindle Fire Raises Privacy Concerns

Amazon told a Massachusetts congressman that the Silk browser in its Kindle Fire tablet doesn’t pose a privacy threat to customers, but the lawmaker wasn’t satisfied with that statement.

U.S. Rep. Ed Markey (D-Mass.), the co-chairman of a congressional caucus on consumer privacy, on Tuesday released the results of questions he had put to Amazon CEO Jeff Bezos in October about Silk and the data it collected.

Markey wasn’t happy with Amazon’s answers.

“Amazon’s responses to my inquiries do not provide enough detail about how the company intends to use customer information, beyond acknowledging that the company uses this valuable information,” said Markey in a statement.

“Amazon states ‘Customer information is an important part of our business,’ but it is also important for customers to know how the company uses their personal information,” Markey continued. “Amazon is collecting a massive amount of information about Kindle Fire users, and it has a responsibility to be transparent with its customers. I plan to follow-up with the company for additional answers on this issue.”

Silk, which is based on the open-source WebKit engine, connects to Amazon’s cloud service and servers by default. The service will handle much of the work of composing Web pages, pre-rendering and pre-fetching content, and squeezing the size of page components, a way, claimed Amazon, to speed up browsing on low-powered devices like the Kindle Fire.

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‘Do Not Track’ Internet Legislation, Advances

California is a moving closer to making  into law the first Do Not Track legislation in the U.S., aimed at protecting Internet users from invasive advertising.

The proposed Senate bill, SB-761, passed a Senate Judiciary Committee vote late Tuesday, but it still has a long road ahead before having a chance of being signed into law. It now moves on to the Appropriations Committee, and must also pass the Senate and State Assembly before being sent to Governor Jerry Brown’s desk.

Still, it’s the first time such a bill has made it out of committee, and that’s a big deal, according to John Simpson, director of Consumer Watchdog’s Privacy Project. “This is the first time that a ‘do not track’ bill has actually had a hearing and been debated and then voted forward in the legislative process,” he said.

The bill would give California consumers a simple way of opting out of data collection systems that keep track of their online activities. “It puts up a no trespassing sign on our device,” Simpson said.

Opponents of the bill, including Google, the Direct Marketing Association, and the wireless industry group CTIA, say it puts an unnecessary burden on online commerce.

Online marketers love this type of data because it helps them fashion highly effective targeted advertising. But many consumers don’t want to hand marketers every detail of what they do on the Web.

Under the proposed law, users would have a way — possibly a through a browser setting — of telling Web sites not to track them. If a company disregarded this and collected data without permission, it could face stiff fines.

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