Telematics: Reshaping Car Insurance
January 09, 2013
Automobile companies have been able to revolutionize the industry by creating innovational discoveries in telematics. Every year, these manufacturers create new car models and additional features that are supported by the latest forms of technology integration.
The task of syncing your smartphone to Bluetooth has been taken to another level by Buick’s IntelliLink system, which not only connects it to the car but also to a touch screen in the dash. For Mercedes-Benz drivers, an app is available for drivers to download apps on their mobile phones and add them directly to their vehicle's Comand “infotainment” system.
As auto manufacturers take advantage of the new industry, insurance companies are at the beginning stages of using telematics. According to Ruthana Foulkes, Insurance Telematics project director, telematics are changing the insurance market and there is a dire need for business to be remodeled in order to flourish.
The Telematics Report 2013 Edition, which has will be released on February 25th, includes an industry survey conducted by Telematic Updates with 1,300 senior level insurance and telematics executives. It revealed that 85 percent of insurance and telematics senior-level executives predict that by 2020, 51 percent of all car policies will be using pay how you drive technologies (PHYD).
Insurance companies could potentially use insurance telematic products and services to create different polices for customers to receive the highest possible ROI (return on investment). Beyond gathering data, the report also offers insights on how collaborations between telematic and insurance providers based on data collections can also help drive the biggest ROI.
While other issues were addressed like the lack of integration standards for telematics companies and content providers between vehicles and new methods of capitalization, the overall message of this new report is clear for the automotive industry: in order to plan for a thriving future the effects of telematics must be clearly understood
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Edited by Jamie Epstein