Cambridge Mobile Telematics has secured a US$350 million investment to expand its use of artificial intelligence in road safety and insurance.
The company, which is based in a Boston suburb that shares its name with one of the world's leading universities, develops software that uses smartphone and vehicle data to measure driving behaviour and assess crash risks.
The funding round was led by TPG, a private equity firm based in Fort Worth, Texas and San Francisco, and Allianz X, the Munich-based investment arm of Allianz. State Farm, a property and casualty insurer based in Bloomington, Illinois, is also participating.
Cambridge Mobile Telematics’ platform tracks inputs such as braking, acceleration and phone distraction, then converts that data into risk scores used by insurers to price policies and guide driver behaviour.
The deal includes commercial agreements with Allianz operations in Europe, signalling a push to expand adoption outside North America.
“This investment underscores our belief that data and AI can fundamentally transform road safety,” Hari Balakrishnan said.
“We are excited to partner with Cambridge Mobile Telematics to accelerate innovation in mobility and insurance,” Nazim Cetin said.
The investment reflects a broader shift in insurance toward predicting and preventing collisions. It is expected to play a role in a significant reduction in the number of vehicular collision repairs.
Recent research from the Insurance Institute for Highway Safety and Highway Loss Data Institute found automatic emergency braking is associated with about a 50% reduction in front-to-rear crashes, while combining multiple driver-assistance systems can reduce some insurance claim frequencies by up to 39%.
A separate report from the Governors Highway Safety Association and Cambridge Mobile Telematics found drivers using phones behind the wheel are 240% more likely to crash.
