Edge Processing Bridges Automotive Data and Insurance Gap

Article By : Nitin Dahad

Automotive data has been hard to monetize. So NXP and Moter have a new platform enabling deep access to vehicle data and edge processing to enable real-time insurance risk assessment.

While connected vehicle data is increasingly abundant, automotive manufacturers have so far not been able to effectively monetize that data. This is because there’s not enough expertise on how to use that data within existing infrastructure, and how to process the data with a decent return on investment.

The big challenge is getting access to vehicle data, according to Michael Fischer, chief digital officer at Moter Technologies, a data science subsidiary of one of Asia’s largest insurance groups.  In a briefing with EE Times, Fischer, along with Brian Carlson, global marketing director of NXP Semiconductors, outlined how they are addressing this challenge in a new partnership that helps bridge the gap between the automotive and insurance ecosystems.

NXP-MOTER diagram July 2021
The new platform from NXP and Moter is supposed to provide easier access to deep vehicle data at the edge, a key enabler for new vehicle data-driven opportunities such as advanced insurance, vehicle health and fleet management services. (Source: NXP / Moter)

The collaboration between chip company and insurance tech (insurtech) company is a new secure data exchange platform that links data from connected vehicles to the insurance industry, to power data science solutions for risk assessment and cost modeling. The platform combines NXP’s S32G2 vehicle network processors, offering a new type of vehicle edge compute with the ability to access vehicle-wide data, with Moter data analytics software to help fully monetize vehicle data for new and improved automotive insurance services.

NXP GOLDBOX
NXP Goldbox, a production-grade reference design, offering a new type of service-oriented architecture (SoA) gateway providing data from all parts of the vehicle. (Source: NXP)

NXP’s Carlson explained, “With the new platform, it’s possible to do things you couldn’t do before because you have deep access to the vehicle data using NXP GoldBox. This is a production-grade reference design, offering a new type of service-oriented architecture (SoA) gateway providing data from all parts of the vehicle, and it’s over-the-air (OTA) update-able.”

NXP’s GoldBox reference design, based on one of the recently launched S32G2 vehicle network processors, is a key enabler for new vehicle data-driven opportunities such as advanced insurance, vehicle health and fleet management services. It provides safe and secure vehicle edge processing, support for OTA services, and connectivity to in-vehicle networks and the cloud required for next-generation automotive applications.

S32G2 processors provide both high-performance real-time and applications processing combined with vehicle network interfaces, network acceleration and hardware security, along with expansion support for machine learning (ML) acceleration, mass storage and wireless connectivity to deliver a powerful service-oriented gateway.

The Moter platform offers advanced risk algorithms that can be updated over-the-air and combined with an insurance carrier’s or mobility company’s custom insurance algorithms to create marketable driver insights. The Moter platform can be licensed for use with OEM vehicles to facilitate data exchange with insurers and mobility companies who are willing to subscribe and pay for driver insights to enable new vehicle data-driven products, including, but not limited to, usage-based insurance.

Improving telematics insurance with data

New vehicle insurance policies driven by telematics data, which have reached penetration rates as much as 30% in some insurance companies, represent a market that is expected to grow over 27% annually as insurance providers develop new data-driven insurance products. Access to a broader automotive dataset, with more detailed and accurate insights, can enable the development of next-generation analytics tools for actuarial analysis, new mobility product development and claims management.

While connected vehicles can generate terabytes of data per hour, some of which can be leveraged for sophisticated underwriting and multiple business applications, carmakers and insurance companies are impeded from a lack of available, cost-effective data processing platforms with sufficient performance, security and centralized access to vehicle-wide data.

This is what the platform from Moter and NXP is intended to address. Fischer commented, “Usage-based insurance is one of the data commercialization opportunities with the most customer satisfaction and revenue potential for the automotive industry today. Together with NXP, Moter is providing the data bridge that will enable the automotive industry to unlock the riches of data for mobility insurance, fleet health and monitoring and infrastructure planning and optimization.”

In addition to enabling real-time risk assessment using live vehicle data, the companies hope that by bringing the software to the data at the edge rather than taking the data to the software, they can enable other new products that monetize vehicle data, as well as providing real-time vehicle health and safety reporting.

McKinsey graph connected car data expectations
There has been slow progress with connectivity and data monetization, since many OEMs had struggled with connectivity or related software developments. (Source: McKinsey)

McKinsey report highlighted earlier this year that there has been slow progress with connectivity and data monetization, since many OEMs had struggled with connectivity or related software developments. However, it added that car data monetization is at a tipping point now, especially if OEMS and ecosystem players are able take advantage of new technologies that provide more powerful E/E architectures and OTA updates, and exploit significantly increased computing power and interconnectivity.

This article was originally published on EE Times.

Nitin Dahad is a correspondent for EE Times, EE Times Europe and also Editor-in-Chief of embedded.com. With 35 years in the electronics industry, he’s had many different roles: from engineer to journalist, and from entrepreneur to startup mentor and government advisor. He was part of the startup team that launched 32-bit microprocessor company ARC International in the US in the late 1990s and took it public, and co-founder of The Chilli, which influenced much of the tech startup scene in the early 2000s. He’s also worked with many of the big names—including National Semiconductor, GEC Plessey Semiconductors, Dialog Semiconductor and Marconi Instruments.
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