Many car insurers have struggled for years to get policyholders to adopt telematics, a way to collect information about mileage and driving habits directly from the vehicle. General Motors Co. ’s new deal to market car insurance based on data from onboard computers advances insurers’ efforts to size up risk.
Through cellphone apps and dashboard dongles, insurers have been hauling in a lot of data and offering discounts to the safest drivers, but many policyholders think the hassles outweigh the savings.
Industrywide fewer than about a tenth of policyholders are going the so-called usage-based insurance route, though the percentages are higher at insurers that have worked hard at it, according to consultants.
Analysts say the breakthrough in the GM partnership, which is with a unit of American Family Insurance, is that the hassles largely go away for policyholders. Once policyholders consent, insurers can access their data without the use of dongles or cellphone apps. The partnership follows an arrangement Ford Motor Co. and Lincoln Motor Co. struck with Nationwide Mutual Insurance Co. that was detailed in February and also involves “connected car” data.
“This is the leading edge of what within a few years will be all major automobile manufacturers having similar arrangements with insurers,” said Robert Hartwig, a professor of insurance at the University of South Carolina’s Darla Moore School of Business.
Tokyo (Reuters) – Nissan Motor Co 7201.T could trim its forecast for a full-year loss when it reports quarterly results on Thursday, analyst estimates show, as a recovery in China marks a rare bright spot for the Japanese automaker weakened by scandal and the pandemic.
Nissan’s second-quarter results are likely to highlight how it is falling further behind domestic rivals Toyota Motor Corp 7203.T and Honda Motor Co Ltd 7267.T, both of which last week raised their profit estimates thanks partly to an uptick in demand from China, the world’s largest auto market.
While China’s rebound from the pandemic is proving a boon for Japanese automakers, Nissan is still struggling in North America, where it is hampered by an ageing vehicle line-up.
“A recovery in China is perhaps encouraging, but certainly not a panacea for Nissan’s overall troubles. The key to recovery is North America, where the majority of problems stem,” said Julie Boote, an analyst at Pelham Smithers Associates in London.
Toyota and Honda “are currently doing even better than Nissan in China; but, most importantly, neither of them have the same issues as Nissan has in North America,” she said.
Twenty-three analysts surveyed by Refinitiv estimate an average operating loss of 335 billion yen (2.4 billion pounds) for the full year, 28% less than Nissan forecast in July, as the pandemic raged.
Toyota and Honda both more than doubled their forecasts last week to a 2.47 trillion yen operating profit and 420 billion yen gain respectively.
Vehicle sales in China, the world’s biggest auto market, expanded 12.8% year-on-year in September for a sixth straight monthly gain. That recovery shows signs of taking hold in the United States too.
But Nissan, the maker of the Leaf, the world’s first mass-produced electric vehicle launched a decade ago, is constrained by its line-up. Chinese consumers are seeking mid-sized or large luxury vehicles, while North American drivers are shifting to sports-utility vehicles and large pickups.
Aware of its competitive shortcomings after years of expansion under ousted leader Carlos Ghosn, Nissan has said it would cut production capacity and model numbers by a fifth and slash operating expenses by 300 billion yen over three years – similar to revamps at alliance partners Renault RENA.PA and Mitsubishi Motors Corp 7211.T.
It also plans to launch new cars.
Chief Executive Makoto Uchida has also announced plans to launch nine new and re-designed electric models in China over the next five years.
Nissan also unveiled the Ariya SUV, its first electric vehicle since the Leaf, with a driving range comparable to models built by Tesla Inc TSLA.O. It will go on sale outside Japan, including in North America, after the middle of next year.
When measured by output, Nissan at the end of September was a much smaller manufacturer than two years earlier, before