Is Xemplar Value Added Services a Market Disrupter?

It’s a critical time in UBI with connected car meets the connected world throwing up challenges as well as opportunities.

 Mobile telematics comes with value added services like usage based insurance (UBI) which is impacting the vehicle telematics and insurance telematics sectors. Studies have found that UBI is all set to become a market disrupter disturbing the established players and traditional insurance models in the vehicle insurance segment. According to Yahoo Finance report over $21.8bn of automotive premiums will be generated by the Usage-Based Insurance market in 2016.

 Smart phone Based UBI programs the Key Market Determinant

Value added services in mobile telematics will play a key role in market disruption. Currently the PHYD/PAYD insurance falls under four categories:

• OBD-II based UBI programs
• Smartphone based UBI programs
• Hybrid based UBI programs
• Black-Box based UBI programs

 Telematics insurance growth is gaining traction. From 2.8% in 2014 it grew to 6.3 in 2015 and 9.3 in 2016. The projected growth is 19.2 for 2019. Nielsen’s 2015 Insurance Track survey has found that Millennials who comprise 44% are more likely than the average consumer to use a device from their insurance company to track driving behavior in exchange for discounts. UIB is all about discounts for good driving behavior and surcharge for faulty driving behavior. Nielsen’s survey indicates the inclination of Millennials to deal with insurance companies through their smart phones. Because of this stronger reason smart phone based UBI programs will emerge as the key determinant of telematics insurance market relegating other three PHYD/PAYD insurance models to sidelines.

 Role of Value Added Services in Mobile Telematics

Now let us come back to value added services in mobile telematics. If drivers are tracked effectively this can helps in saving time, money, fuel etc. Telematics geofencing software helps in locating the vehicle, entry time and exit time from geofence as well as average time spend in transporting. To be specific fleet managers will be in a position to regulate driver moves on usage of time and fuel from control room. Moreover, if the driver took a different route other than prescribed route or asking the rationale of ‘why a different route was chosen’ will help in setting driver accountability. This will help in tracking incidents like rapes which are sometimes happen due to driver misbehavior. Geo fencing and breach notifications are value added services featured in mobile telematics.

Insurance Requires Efficient Two-way Communication with Customers

Connected car with connected devices’ will be next disruption force in the insurance telematics industry. The 7th Annual Conference and Exhibition on Connected Car Insurance USA 2016 to be held from 7-8 September, 2016 at Radisson Aqua Blu, Chicago, the largest and most informative forum for executives from across the connected car and motor insurance industries will invite lot of attention on this topic. Prime Technology Group, one of the sponsors of this event has responded to the challenge ‘connected cars with connected devices’ with Xemplar a mobile telematics solution that enables fast and efficient two-way communication between insurers and customers.

Shared Driving Data Has Become a Reality

Automotive technology has come a long way. From trying to navigate using physical maps to GPS that points the exact location you are at, technology has evolved and still continues to do so. Today, we can hardly function without the GPS. Technology takes it up a notch and has begun determining how we drive.

Telematics – the latest technology that integrates telecommunications with transportation to make transportation data available in real-time. This technology not only includes navigation and traffic information but also actual driving data. Telematics collates driving data by monitoring hard brakes, rapid accelerations, speed variations, average speed and parking information.

Use of driving data

Who requires driving data? While I may be curious to know how I drive, not everyone is interested. However, there are certain industries that actually benefit from this information. Hence, the purpose of collecting driving information is not focused on individuals who want to improve their driving skills as much as bigger organizations.

Telematics: Unlocking the Futuristic Auto Insurance Strategies

The auto insurance industry is embracing mobility, big data and cloud technologies to provide a seamless experience in insurance policies to customers in the areas of driving history, updates on vehicle health status, feedback on driving skill and so on. The influence of technology on auto insurance industry is manipulating the old insurance strategies and its known fact of inadequate use of technology. But the latest development in vehicle telematics is manifesting the pathway of customers with immediate rewards towards insurers in a unique way, with less complexity and more flexibility in all aspects of auto insurance policies.

In the past, customers were reluctant to pay additional premiums and it was mandatory to avail insurance policy benefits. But with the introduction of vehicle telematics, customers or policyholders can greatly reduce the unnecessary insurance premium charges by showing good developments in their driving skills. It’s like Pay How You Drive (PHYD) concept wherein your auto insurance policy premium is directly dependent upon the nature of your driving behavior.