Telematics has emerged as a rising reform in driver safety and insurance norms. Insurance businesses all over the world continue to adapt to usage-based insurance (UBI) to provide tailored services using telematics, creating win-win situations between the insurance seekers and insurance providers.
With the rapid growth in multiple technological advancements, it is rather unjustified for telematics to lag behind. As powerful as a tool it has proved to be for usage-based insurance, insurance carriers are beginning to foresee a competitive advantage in leveraging telematics solution beyond this traditional usage. With the introduction of pay-per-use (PPU) and on-call services like roadside assistance, claims management, damage control and recovery, workforce administration etc., a new dimension has opened up for insurance providers.
The emergence of Cloud has enabled collection of data and running analytics on it smooth and easy. Having established that, the scope for exploiting this data for commercial innovations and gains has come to light. Organizations can use telematics to build their own predictive models to leverage their data strengths. The adaptation of agile communication trends via mobile devices has enabled automation of consumer communication. This, in turn, has made insurance firms to recognize telematics’ capacity to facilitate real-time data, enabling their penetration into commercial sectors offering telematics as a service.
Telematics for Enhancing Marketing Potential.
The use of the real-time data and analytics can lead to unleashing of a huge marketing potential telematics has to offer. Insurance carriers will have opportunities of investment into communication businesses, resulting in better customer services and increased sales opportunities within the existing consumer base.
Telematics for Behavioral Analysis.
The way consumers purchase the existing services will also act as a torchbearer for insurance carriers to build services that can be innovated and sold to these consumers. Not only is this inclined towards monetary gains but will also encourage innovation related to security and safety applications.
Telematics for Eco-Driving.
With the capability of real-time tracking, telematics is empowered with GPS monitoring systems built to analyze driving behaviors. Potentially it can be used as a scale for calculation of pollution levels resulting in claim loss to the insurance buyer, encouraging them to choose environment-friendly ways of driving. This mechanism will automatically result in lesser claims and prolonging the life of the vehicle. It can also be offered as a service to automobile giants enabling the production of better vehicles and incorporation of telematics-based insurance devices in new vehicle models.
Telematics for Smart Owners.
Segregation of users on the basis of safety habits will lead to the scope of having devices tailored to predict and highlight avoidable hazards. As wearable devices popularize themselves, telematics can seep into this system by making internet-of-things (IoT) devices stronger and prevalent. Keeping up with the saying “prevention is better than cure” this will again result in lesser claims, more safety and an opportunity for insurance carriers to expand their services outside automobile sector, for example, construction, home appliances, etc.
Telematics for Timeshare Users.
Low premium value and lesser potential risks among temporary users have always put lessees and renters in the back seat for insurance carriers. However, with the growing base of secondary or temporary owners telematics heralds a new area of opportunity for all. The numerous smaller rental market portions comprise to make a bigger one, taking this as an advantage point insurance carriers can promote their services to both the primary owner and to the boarder dissolving risk levels and simultaneously encouraging safety measures.
Telematics for Security.
The boom in telematics opportunities will involve a lot of data exchange and information transportation, resulting in exposure to treason and cyber malware. If paired with the right security solutions, will result in safeguarding crucial industry information preventing fraud in insurance sector that indirectly effects critical operations such as government, banking, etc. It can also be leveraged in security consultancy, providing a technological edge of business to insurance carriers.
Telematics for Innovation.
With the amount of detailed data collected from insured vehicles via telematics, it will become easier to bring innovations like driverless cars to reality. With scanning and visualization capabilities incorporated in vehicles, telematics will enable collection of geographical data resulting in aiding research for such advanced vehicles. This will encourage technology giants to expand into the insurance sector making it a stronger economy contributor and justify the liability share. With the rising risks in modern lifestyle, individuals and businesses are taking insurance more seriously than ever.
These are but a few application areas of a rather fast-paced telematics revolution that is upon us. There’s scope for a lot of innovation in the years ahead, resulting in commercial development for the ultimate benefit and safety of the users as insurance entails.
