Truck fleet insurance company Nirvana launched in 2021 and is powered by telematics technology as UBI insurance offerings go mainstream for fleets
Nirvana, a trucking insurtech located in San Francisco, has secured US$22 million in its Series A round. Menlo Park, California-based Lightspeed Venture Partners, among other investors, led the investment round.
Nirvana collects data from sensors on commercial fleet trucks using a telematics-driven technological platform. The UBI solution has been lauded as a system that enhances driver safety by encouraging improved driving habits and monitoring vehicle health.
UBI safety factors assessed by telematics
Location, speed, video, irregular driving, weather, and traffic are all factors considered. Nirvana also provides frequent advice to its clients, including driver training and avoidance routes, according to the business.
The insurtech explained its processes in a statement made by Nirvana executives, which include connecting to data points from telematics and artificial intelligence-powered dashcams, as well as public sources such as the Department of Vehicles, to generate quick estimate.
Telemtics rising in popularity among fleets and private consumers
Over the last two years, the usage of telematics and UBI policies has expanded dramatically. Telematics and usage-based insurance policies, according to a 2021 analysis by Insurance Mobility Solutions, can result in a 57 percent reduction in total claims costs. The truth is that reward-based insurance attracts a specific type of customer:one who dislikes risk and is willing to drive cautiously if highly compensated.
Increased mobile penetration in industrialised countries has aided the rise of the UBI and telematics industries.
The UK Government’s Centre for Connected and Autonomous Vehicles commissioned a report from Element Energy, Cambridge Econometrics in January 2021. According to the report, future progress in connected and autonomous vehicles will result in an estimated 72,000 employment and $3.5 billion in gross value added to the economy by 2035, depending on current market trends.