Telematics in Insurance
Telematics is the joint science of telecommunications and informatics applied in wireless technologies and computational systems.
For most insurance purposes, telematics is short for vehicle telematics, referring to automation in cars and other vehicles. GPS navigation, integrated hands-free cell phones, wireless safety communications and automatic driving assistance systems are all covered under the telematics umbrella. Insurance-related applications of telematics have evolved, including vehicle and container tracking, fleet management, satellite navigation, wireless vehicle safety communications, emergency warning systems, intelligent vehicle technologies and more.
The ability to monitor and track driving characteristics and driver behaviours provides the basis for Pay As You Drive (PAYD) or Usage-Based Insurance (UBI). Telematics would be a component of self-drive cars (SDC).
Global UBI Market to Reach $123bn by 2022
The global usage-based insurance market is expected to exceed one hundred billion USD by 2022, growing at a CAGR of 36.4% from 2016 to 2022, according to a new report published by Allied Market Research. (Read more)
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