Insurance Telematics: The Big Data intelligence on driving behaviour will change the auto insurance industry!
Insurance telematics as long been discussed, although, its worldwide application and market take off has been struggling to gain momentum it will be a matter of time until insurers worldwide start to roll out their telematics insurance solutions. According to ABI research there were 1,85 million monitored drivers in the year 2010, however this number is expected to grow to 89 million in 2017. Inosat is investing on Big Data analysis to be ready for the future demand of insurers worldwide that will start to roll out their telematics insurance solutions on the coming years.
Usage Based Insurance (UBI) can be deployed in different formats, the PAYD (pay as you drive) solution, that takes into account the number of kilometres driven, as been evolving for a PHYD solution (pay how you drive) which will look not only to the kilometres driven but will also take into consideration factors such as the behaviour behind the wheel, the time of usage (night hours or high congestion traffic hours) will ultimately allow good drivers to see their insurance fees reduced. However these are not the only advantages insurers offer to final consumers that adopt telematics insurance, value added services can also be offered such as: vehicle location in case of theft, quicker roadside assistance in case of impact or breakdown, emergency calling, and why not monitoring the younger and the elderly driving habits or displacements.
For insurers the benefits are mainly related with the obvious reduction in claims payout, fraud detection and customer retention, not forgetting to consider operational savings obtained by enabling a more efficient roadside assistance.
The technology is present, and consumers are more willingly to adopt connected devices, the changing factor should rely on the message insurers will adopt when rolling out these products, focusing on the benefits for end users that start on lower insurance fees that will reward good drivers and evolving to aiding in accidents reduction and ultimately providing a personalized service.
InoInsurance is a telematics solution that allows companies to track kilometres driven, collect information on drivers performance, being also able to provide feedback that allows the improvement of driving performances and vehicles efficiency.
Discover more on Inosat’s solution for insurers: www.inosat.com/insurance-leasing