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 telematicssolution 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.
