OnStar Studying Marketing Opportunities for Data Collection

OnStar Inc. President Chris Preuss is directing a group to study business opportunities from which his company might reap additional revenues, in addition to its electronic concierge service, by marketing its considerable storehouse of vehicle and driver data.

No decisions have been reached, Preuss tells Ward's at a press conference in New York. "I don't know yet what we can do with a lot of these data."

OnStar has been approached by companies, including insurance firms, seeking to make use of the data the company has accumulated in its 14 years of operation.

For instance, if OnStar subscribers wanted to send driving behavior and performance to their insurers, "we can facilitate that," Preuss says.

Parents could request OnStar send a text message if their newly licensed teen hits 80 mph (129 km/h) while cruising in the family car alone. Parents could prove their children present a lesser "risk" profile from others in their age group, he says.

An insurance company might offer discounts on insurance premiums with that kind of evidence, Preuss suggests. But regulatory issues complicate that kind of scenario in some states that might rule such a discount gives certain customers an unfair advantage over those who aren't OnStar subscribers.