What’s Happening in Telematics? News Roundup
It’s that time again! Let’s look at what’s new in the world of telematics.
1. At last, GEICO joins the telematics wave.
The giant was holding out. But those days are over. GEICO saw that a major competitor that embraced usage-based insurance had “a significant advantage on the loss ratio side,” Insurance Journal said, and now with a new CEO, it’s ready to quietly roll out its new telematics program.
2. No need for customers to file a claim?
According to David Smith at Global Futures and Foresight, pricing and compensation may become automated to the point that the insurer won’t even need the customer to file a claim, TU Automotive said.
3. Many drivers don’t know they can save money with UBI.
While 64% of drivers would download a driving app that reports on their driving safety, only 27% have been offered a usage-based insurance quote, and the total penetration in the U.S. market is less than 10%, according to the 2019 UBI and Telematics Market Report by Cambridge Mobile Telematics (CMT).
4. UBI acceptance and adoption is growing.
The CMT study found that 50% of customers adopt usage-based insurance when offered the option. Furthermore 75% of customers surveyed preferred the idea of insurance pricing based on driving behavior compared to traditional factors such as a credit score.
5. What qualifies as “harsh driving”? Fleet managers decide.
Verizon recently launched Integrated Video, Fleet Equipment Mag said, in which a road-facing dash cam turns on when the engine starts and begins recording when it recognizes a “harsh driving event.” It gets better at recognizing them, too, because for every incident, the fleet manager is asked whether the system got it right. Thanks to machine learning, the data gets progressively better with time.
6. By 2023, expect 150M installed telematics devices.
IoT Business News said that the number of aftermarket car telematics units is growing at a compound annual growth rate of 20.6 percent, bringing the number of units from 58.7M at the end of 2018 to 150M by 2023, according to Berg Insight.
7. Study looks at how telematics may improve driving.
The public insurer ICBC is launching a one-year pilot program this year. The goal? To understand how telematics can be used to improve driving behavior. It focuses on novice or newly licensed drivers with less than four years’ experience, offering gift cards to major retailers in exchange for participation. Can telematics significantly affect their skill level? We’ll find out.
Where does you company stand?
Is your company thinking of offering a customer an app that monitors driving behavior? Don’t reinvent the wheel. Save time and money by white labeling Silvervine Mobile, our all-new auto insurance app. Download our capabilities sheet now and request a test drive. We’ll send you a link to download and test the new app. Our white labeled app may provide you with a faster, smarter path to digital engagement!