The motor vehicle
market is changing rapidly along with
the insurance market. Over the last few years, insurers have begun to
incorporate telematics via Usage-Based Insurance (UBI) programs. New
opportunities with telematics in claims and underwriting present compelling use cases for both
insurers and consumers.
Insurers can now
innovate using insights from new data sources or risks identified in real time.
Penetration rate of personal telematics insurance policies is estimated to
increase to 10% in 2020. This represents
an increase in the number of telematics insurance policies o nearly 90 million
in 2020.
Actual driving data
strongly influences the predictability of a consumer having an accident claim
or not. Telematics is an important
factor in the determination of premium pricing. Beyond pricing behavior
analysis and claims data can be used for predictive analytics and risk
management. Data can be directly actionable for the benefit of both insurers
and policyholders.
Using Telematics data
to detect motor vehicle crashes and optimize resulting claims presents
significant advantages for both insurers and policyholders. While the insurance industry is wishes
the driver drive safe
through driver education, there is more value to telematics, especially
in claims handling in determining the cause and faults in an accident.
Telematics is transforming motor insurance with connected and autonomous cars. Cars that drive themselves affect both the
need for insurance and liability assignment.
Telematics data
delivers significant value to insurers, including reducing the average cost of
claims, and combating fraudulent claims, and improving data collection
techniques. Telematics expedites the entire claims process, and as an insurer
employs telematics for this purpose, it lowers the average claims cost.
Usually the
policyholder controls the moment when a claims process starts. They would be the party that triggered the
claims process, but with telematics, the insurer’s claims process begins
immediately when a crash is detected,
enabling more control, better customer service, as well as fraud and cost
reduction. Telematcis helps with a
proactive First Notice of Loss (FNOL) service allowing the insurance company
respond fast to an accident, even
moments after it has happened, Proactive contact can be made with the
policyholder to collect as much information as possible and “freeze” the crash
scene. The goal is to minimize the risk
of fraud or subsequent third-party intervention in the claim process .
Real time data delivers detailed crash recordings, which
includes:
●
Date/Time of impact
●
Speed and location
●
Vehicle journey at time of crash and g-force
●
Acceleration/deceleration parameters
●
Use of brake, signals
●
Weather
It can also provide additional information to help roadside assistance and
emergency services manage the event accordingly.
Telematics can gives
insurers an accurate understanding of a crash even if only one of the vehicles
is enabled with telematics. Insurers and
leverage this data to project the possible long term and short term physical
impact to the driver and passengers of a vehicle.
Telematics insurance
policies, on average has shown to result
in fewers claims compared to non
telematics policies. Telematics data and
proactive FNOL have the ability to improve the claims management process by
several days. Data analytics is critical
to understanding of events that happened to determine liability.
Driver behavior
analysis along with crash and claims data leverages the models of predictive
analytics for risk management, personal engagement and underwriting, and
benefits insurers to provide : Lowering claims frequency, Reducing claims
costs, Improving customer value proposition and increasing loyalty and stronger
retention strategies.
With telematics
adjusters are equipped with the best insight to assign responsibility in a
crash, process claims faster, and significantly minimize fraud. The use of
telematics in crash and claims rapidly grows in fighting fraud and recognizing
new channels of revenue for insurers.
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