Telematics adoption by insurers poised to increase as bar to entry is lowered and value becomes more clearly defined: Novarica
Boston, MA (July 17, 2018) – While the use of automotive telematics in insurance is still relatively modest, it is poised for expansion as infrastructure, user familiarity, and built-in connected features improve. Even so, 50% of the insurers who have deployed telematics programs say the value is unclear. Today, most carriers who leverage telematics capabilities do so for actuarial and underwriting purposes, but carriers and vendors alike are beginning to consider the range of other services telematics can offer, particularly in the claims process.
In a new brief, Beyond UBI: Auto Telematics In Insurance, research and advisory firm Novarica summarizes the state of automotive telematics for the auto insurance industry and surveys major players in the vendor landscape.
“Thinking beyond service packages, telematics programs like driver improvement initiatives give insurers the opportunity to realign their relationships with policyholders; carriers can position themselves as entities who care about their insureds’ well-being and invest in their safety and self-improvement,” said Jeff Goldberg, Senior Vice President of Research and Consulting, and co-author of the report. “In that sense, the greatest value of telematics isn’t in improved underwriting or even in data capture, but in the way it challenges insurers to reimagine their service offerings and their relationships to their policyholders.”
A preview of the brief is available online.
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
Source: NovaricaTags: Novarica, Telematics