Arity, a spin off from Allstate Insurance, currently watches more than a million drivers for Allstate and online Esurance. Telematics data is collected from drivers who have agreed to let Arity monitor their driving habits in exchange for better rates. With that data, Arity assigns individual drivers a score, similar to credit a score, with which Arity's insurance company clients are able to base their rates on their customer's actual driving behavior. The science behind it is called predictive analytics and it is an effective way to identify risk for many applications.
Arity is run by Gary Hallgren, a telematics expert previously with Telogis, a fleet management and telematics solution company well known to construction and transportation fleet managers. Predictive analytic technology is already in use to monitor both equipment operators and their vehicles for signs of risky operation or the beginning of component failure. European insurance companies are also using their driver's driving data to judge risk.
The Chicago Tribune recently interviewed Hallgren and asked him who Arity is tracking, what they are measuring, and what companies do with billion miles of driving data Hallgren says the company collects each month. Read Hallgren's view of how telematics will change the mobile industry in the Trib's Allstate Spinoff Arity Uses Cellphone Data to Be High-tech Backseat Driver here.