Leading connected insurance services provider FairConnect and European mobile telematics pioneer DriveQuant have joined forces to accelerate the development and roll-out of best-in-class white-label connected motor insurance solutions to the European insurance market. The new combination brings together the expertise and financial support of Palamon Capital Partners, a leading private equity firm that invested in FairConnect in 2018, and R&D resources of French research institute IFP Energies nouvelles (« IFPEN »), which launched DriveQuant in 2017.
The new partnership will be supported by an investment of up to €5 million over the next three years, which will enable the DriveQuant and FairConnect teams to deliver on their common vision of developing connected insurance solutions to European insurance carriers through their customers’ smartphones.
“FairConnect was founded in 2016 to develop connected solutions in partnership with the main insurance carriers. To reinforce our commitment, we have identified a number of companies with great potential in terms of market knowledge and technological excellence worthy of fulfilling our vision. DriveQuant is a champion on the French market and in scoring and analytics technologies with an emphasis on the use of the smartphone as a sensor. We are proud to team up with its resources, customers, and shareholders.”Carmine Carella, Chairman and CEO of FairConnect
Together, they aim to provide a range of benefits to the motor insurance value chain – from underwriting to claims management – through a white-label telematics platform delivering data analysis and scoring capabilities. Their common connected solutions will enable valuable scoring by analysing mobility data collected either via IoT (Microbox) technology or by using the smartphone as a sensor.
Motor insurers partnering with FairConnect and DriveQuant will benefit from access to comprehensive support, IT infrastructure and technology to create unique connected insurance products with a significant positive impact in terms of underwriting performance, claims management efficiency, customer retention and overall business growth.
FairConnect’s Chairman and CEO, Carmine Carella will lead the operations, which will be maintained in existing offices in Switzerland, France and Italy, and DriveQuant’s senior management team will be integrated into FairConnect’s global leadership group. Mr. Carella has a strong track record in the successful adoption of telematics in the insurance industry from his role as CEO of Cobra Telematics, which was founded in 2002 and acquired by the Vodafone Group in 2014.