INSURTECH: Rage Against the Machine and $500MM telematics Softbank investment

Let's start off with the ridiculous, and get more ridiculous. SoftBank has a lot of money to invest in category killing fintech businesses, and one of the latest such players is Cambridge Mobile Telematics, which just received $500 million from the investor. What is it? A widget attached to a car windshield, and then used to collect data about the quality of a particular driver -- from speeding to breaking. This data is then tied to the purchasing of insurance, where "good" drivers have access to lower cost financial products. This is an interesting, and pioneeing, example of how edge computing will create orders of magnitudes more digital data that then feeds the manufacturing of finance. 

A sneaking suspicion in the back of our minds is that driving data is really good for training robots how to drive. Meaning, Google and the rest of the big tech companies are all running experiments with self-driving cars on the road to collect driving data. Something simple from a telematics device certainly is not equivalent to major machine vision and radar data. But it does paint a straight line towards how self-driving car insurance should be priced. Let's repeat that. If a widget in a car tells you insurance prices based on driving performance and you combine that with an AI car, you could compare humans and machines on an apples to apples basis.

The ridiculous part is the human response to tech-first transportation companies. In London, Chinese bike-sharing company Ofo is pulling out of the city because people steal and destroy their untethered bikes. In California, aspiring freedom fighters keep throwing scooters from Bird and Lime into oceans, lakes and rivers. Public service employees are straining to fish out these venture capital funded wonders out of the water. In Phoenix, self-driving Waymo cars are getting their tires slashed and assaulted by gun-wielding road-ragers (Mad Max style, we assume). All that to say that the human element in this story is allergic to being entirely prodded, measured, and automated away. Can politics catch up with SoftBank's Vision Fund, which could build Trump's wall 20 times over? We hope so.

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Source: DigIn (Softbank), Gizmodo (Ofo), Slate (Bird), Business Insider (Waymo)