It seems the potential demand for usage based insurance in Canada just got a whole lot bigger last week. And consolidation is accelerating the opportunities. The 2014 Insurance-Canada.ca Technology Conference (#ICTC2014) will be a good place to get more information on trends and directions in this important area.
UBI providers are consolidating
Desjardins is already in the market with Ajusto and their less well known product Intelauto. Of course you’ve heard, Desjardins has acquired the Canadian arm of State Farm.
Around the world it’s been estimated that 10-30% of drivers will opt in and install a telematics device in exchange for something of value such as discounted insurance premium. Now that Desjardins has grown from about $2 billion in premium to almost $3.9 billion – and in respect to State Farm’s business, most of the premium is automobile – an increasing number of the population are going to get to take control of their driving behavior to influence what they pay in insurance.
And this brings unique opportunities…
So what are the opportunities? Here’s my personal case study: I started with only one telematics device in one car in our household – now we have two. I told my siblings about what it was giving me and they are both insured by State Farm. It’s interesting that they may soon have an opportunity to jump in.
So what did I learn today, and where can we learn more?
My experience personally and professionally is that telematics offers many new opportunities that enable insurers to be more creative about insurance products and services and how they interact with their customers. I am looking forward to learning more about this at #ICTC2014 in March. And look forward to meeting you there!
Christine Haeberlin, Business Development Executive, Insurance, IBM Canada. Christine is IBM Canada’s insurance industry leader, where she is responsible for developing integrated industry solutions that achieve targeted business outcomes for insurers.
Editor’s Note: Christine will be presenting on “Planning for Success with a Telematics Program” at #ICTC2014.