A New Era in Data-Driven Insurance Telematics

What is telematics? 

Telematics has been here for about 20 years. Nevertheless, it took a hit during the Covid-19 pandemic, when personal mobility has changed, and customer's demand for products like pay-per-use, UBI, and telematics-based renewals became more evident. As the technology improved from the black-box to the smartphone sensors, there are almost no more obstacles for telematics to become prevalent in motor insurance.

What are the benefits of data-driven insurance telematics? 

Tailored quoting, more accurate risk assessment, enriched claims contextualization, improved fraud detection, increased retention rates, additional touchpoints to create a continuous communication channel with customers, and more sales opportunities, such as cross- and upsell of other life and non-life insurance products, could all be advantages for insurance companies.

Customers do not need to install any hardware devices in their vehicles because the modern solution is available by simply downloading a mobile app. Customers can log journeys and keep track of all the excursions they've taken in the past, as well as how safe, eco-efficient, and car-wearing they've been. It gives customers a sense of transparency over its policy, and that is what sets your insurance company apart from your competition.

How can data-driven telematics reduce motor insurance fraud? 

Car insurance fraud is a constant problem for insurers leading to higher insurance premiums due to higher cost/claim ratios. Telematics and data analytics is perfect means to overcome wrong customer information or even manipulated car crashes. For example, the correctness of customer information, place of living as one crucial factor for calculating insurance premiums can easily be matched with mobility patterns and verified.

Can claim context enable faster claim settlement?

Contextualization helps to track back what happened before the accident – a significant advantage in processing claims, as most persons involved in a crash can hardly remember all details. Sometimes, the data can help claim holders clarify the accident's circumstances and fasten the claims settlement. On the other hand, the data analytics approach empowers insurers to understand better how claims come into being, allowing them to take measures to predict and prevent accidents.

Can the Adacta / Motion S Telematics solution be an independent item in the IT architecture and serve only as an UBI business service?

Yes, the solution can be deployed and integrated as a standalone solution with a small footprint in the overall IT landscape. Cloud support included.

Is the telematics data timely available in AdInsure for the underwriter or the agent to calculate the premium?

Yes, the premium is calculated in real-time. The data is requested by the AdInsure run quotation and policy process to calculate the premium. Both the data retrieval from the data platform and premium calculation happen in real-time.

Is data collected only by the mobile app, or is there an option to integrate with another standard tech like Telematics boxes?

The application is just an alternative for collecting the data. The key to data collection is the Motion-S data platform, where data can be stored over API. The data sources can be telematics HW devices or even 3rd party data platforms where data of different car manufacturers can be accessed directly.

How can we address the possible loss of profit if high-risk drivers stay on standard rates and safer drivers switch to telematics?

The value proposition of telematics goes beyond dynamic tariffs. The key lies in balancing user benefits, policy discounts, and a greater customer experience. Also, once competitors start offering behavior-based pricing, there is little choice. Telematics will equip you with the data to better understand the risk and make a proper decision.

How can the customer understand what kind of driving behavior will be rewarded with a premium discount?

The driver can monitor his behavior in the mobile application. Insurance companies have plenty of room to raise the awareness of safe driving and create loyalty programs that motivate the customers to drive safely and receive discounts on their premiums.

Mobile phone telematics is based on measuring activities while driving. Can the app distinguish between the driver and the passenger?

Yes, this is possible. The latest app release allows the user to link his user account to the vehicle's Bluetooth. Trips without Bluetooth connections are marked as not driven by the user. This feature is optional and, while it doesn't ensure 100% accuracy of driver detection, it brings the number of wrongly detected trips down to a minimum.

The driver's risk profiles contain the factors that the driver cannot influence. Does this have an impact on driver’s interest in UBI-based products?

What impacts the driver score is the combination of the behavioral factors with the contextual factors. For instance, speeding is a risky event with a certain severity based on road safety statistics. When done, for example, under heavy rainy conditions or in front of a stop sign, the severity of the speeding event increases.

Is it possible to inspect specific details and numbers detected by the app, e.g. the details of violating the traffic laws?

All the driving behaviour and context data that AdInsure uses are collected by the Motion-S application and/or provided by the Motion-S platform. While only high-level information is presented within AdInsure, details can be explored within the Motion-S platform if required.

How are the GDPR requirements dealt with in the implementation process?

During data collection, all data is anonymized. A trip is linked to a device ID and is aggregated as such. The insurer can perform Deanonymization on their premises.