The Three-Minute Guide to Auto Insurance Telematics | Deloitte US has been added to your bookmarks.
Auto insurance telematics
The three-minute guide
Learn how your business can benefit from auto insurance telematics.
A recent survey shows that 53 percent of US consumers are open to allowing their driving to be tracked by a mobile device.
“Overcoming speed bumps on the road to telematics”
Deloitte Research, 2014
Why auto insurance telematics?
Telematics is a potential game-changer for auto insurers, allowing them to decrease reliance on proxy—based measures—such as demographics and credit scores—and incorporate real-time driving behaviors to more accurately measure driver risk.
For insurers still on the sidelines, barriers to entry for deploying telematics and analytics technologies are dropping as third-party vendors enter the market. However, not all telematics solutions are equal.
Manage risk more effectively
Real-time driving data allows insurers to gain a more accurate picture of a policyholder’s risk profile while reducing reliance on corollary information such as demographic data and credit scores.
Retain lower—risk drivers
By capturing a critical mass of pertinent data, analytics can help improve insurers’ ability to identify policyholders with safer driving behaviors. This information can be used to develop products that reward and retain lower-risk policyholders.
Attract new market segments
By adding usage-based products to existing offerings, insurers can target new demographic segments and create more innovative and customized product offerings.