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Technology, Discounts, Customer Education to Drive Telematics Auto Insurance

Insurers are recognizing the importance of discounts to penetrate U.S. and Canadian markets. But this calls for the combination of product features.

Something seriously required in favor of the auto insurance policy holders in United States of America and Canada. UBI adoption is growing at a frenetic pace in North America according to the figures released by BI Research. Market watchers are keenly observing the growth of auto insurance and the factors that can pose challenges to auto insurance industry. Figures depict a rosy picture. Telematics based auto insurance growth rose from 4.1% in 2015 to 6% in 2016 in North America. The growth is pegged at 19.2% in 2019. What is the role of telematics expertise in expanding market reach? Can discounts increase the subscriber base? Is there any pitfall? Let us explore.

Insurers are constantly on the lookout for cost effective ways of doing business with telematics. But convincing policy holders seem to be their challenge. Yesterday's know how is passe with newer and sophisticated knowledge developing on ICT front. Data collection and customer engagement hold the key for success in the wired world today. Aspiring policy holders can be convinced by the insurers with cutting edge technologies like: Driving data capture, direct marketing channel, Roadside assistance (NSD Partner), Geo analytics and gamification to mention a few. The millennial and Gen Z are technophile demography for the telematics market.

Technical features are for risk mitigation and discounts are for cost reduction. If both factors are combined market penetration is easier. At this point an expert is taking a balanced view. Donald Light the director of Celent, a research and consulting firm, is of the opinion that a combination of both discounts and surcharges can provide a bright future for telematics in Canada. He was sharing his view during 'Insurance Telematics Canada 2016' in Toronto. We all know surcharges are additional premiums against risky driving behavior. And Light suggest this to change the driver perception on their driving.

What perception Light wants to change? People pay a price for a product or service on their perception on quality. The same theory is applicable to one's perception towards driving. If one thinks he is a 'better driver' and not an average driver which he actually is, then encouraging them to implement telematics mobile app to avail discounts will become a demanding task. Because his self esteem comes in the way of enhancing his driving behavior and accepting drive score as ultimate criteria for improving his driving. It is at this very stage only education is needed to change perceptions.

The very purpose of UBI is to reward the well behaving drivers on criteria like speed, acceleration, phone use etc. Vast part of the population are mobile and it makes sense for them to implement telematics mobile app on their mobile devices to mitigate accidents as well as earning drive score to avail policy premium discounts. Education is needed to change wrong perceptions of drivers to accept UBI as fair and to understand what standard driving behavior is.

Education should be extended on ensuring cyber security as telematics mobile apps are also prone to cyber attacks. This should be seen in the context where 60% of cars and trucks are going to be connected on net by 2017. This means tailored telematics services should address cyber security issue also to gain more acceptance in the market.

Switching to telematics is a good option; it is also promising for the insurance sector that wants to expand its reach. Cutting edge technical features, discounts for drive scorecards as well as surcharges for errant driving behavior can increase the acceptability of mobile telematics thereby attracting new mobile subscribers. If these issues are addressed, auto insurance market penetration will become easy.

Prime's telematics system, Xemplar, enables fast and efficient two-way communication between insurers and customers. Xemplar's mobile app-based system saves you money on hardware and infrastructure costs while also accommodating any mobile device or tablet; reaching drivers anytime, anywhere, and providing your business with critical information in real-time. Contact us now, and in less than 24 hours you will have the technology solution for all generations. For more Information visit: http://www.xemplartelematics.com

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Vroom Vroom!!  How Do Connected Cars Match Up With The Auto Industry Demand?

The automakers are attempting to modernize cars with better navigating technologies. Previously, we have seen that cars were GPS-enabled and they still are; now the latest technology has come into force which is called as Telematics technology. Today’s cars or for that matter vehicles come telematics-enabled. As a result of this new change, the emerging concept of Connected Cars is booming in the marketplace and the trend is overwhelmingly fresh and innovative if you ask me.

In this context, automakers are very keen to incorporate IoT (Internet of Things) technology in cars and trucks to reshape and enhance the mobility aspect of the vehicles.  No wonder, the name “Connected Cars” is buzzing around the world. In fact, it’s encouraging to see that most care makers are dabbling in new technologies. Nowadays, technologies that make your life easy and convenient matter the most and that’s why the advent of in-vehicle connectivity is of paramount importance to them. Let us explore a bit more on this topic.

Connected cars are changing the way we get from source to destination (Point A to Point B) in our day-to-day life, with mobility features such as enhanced navigation system, real-time traffic indications, parking slot information, streaming infotainment, Smartphone integration with dashboard and the count goes on. And these are but some of the new features that are expected to be developed in the near foreseeable future.

It is being mooted that the reinforcements of Connected Car features are expected to have a greater computing ability which is equal to the computing power of twenty computers, incorporating more than a hundred million lines of coding with the ability to process up to 20GB of data in an hour. That’s quite a power-packed feature, isn’t it? The technological specifications for the production of cars or vehicles in the future are most likely going to witness a remarkable change in the automotive industry.

Experts hail that cars are becoming increasingly connected because of flexibility in technology advancement to communicate with the driver and the car, and the unique features that come with the “connectedness” help to eliminate the risks involved in the driving behavior of the customer. That’s a great point. A Connected Car is technologically advanced to optimize its own operation and maintenance such as over speeding, fuel consumption, and vehicle health. The influence of Internet of Things (IoT) on connected cars with the complex and fragmented set of ecosystems requires a structured module to interconnect various components of an end-to-end solution, which enables Smartphone-based mobility function.

One last word: The popularity of connected cars is so enormous that by the year 2018 two out of ten cars on roads will be able to self-monitor and exchange vehicle information over the cloud-based server. This will also ensure the comfort and safety of passengers and other road users. In fact, many car buyers have already started experiencing their own connected cars success stories. It’s your turn now to step

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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.

Driving harshly may now prove costly to customers as premium charges are going to be high on account of that, whereas decent driving behavior will drastically reduce the premium charges. It’s all good to be in your best driving skills that are going to count for fixing insurance premiums. Apart from PHYD, the other two aspects of vehicle telematics include two other auto insurance policy models such as Pay As You Drive (PAYD) and Manage How You Drive (MHYD). The idea behind all three vehicle telematics insurance policy models is to reduce the unnecessary insurance premium charges for customers looking to keep their premiums low and to provide more benefits to skilled drivers who have great driving skills.

Vehicle telematics are beaming with the growth of the Smartphone application; as it turns connected car concept into a reality. On the other hand, numerous advancements in the auto insurance industry with big names in automobile industry like BMW, Audi, Toyota and Ford have started incorporating telematics system in brand new models and even have launched variant telematics features. These connected cars from the house of these renowned auto-makers are expected to be on the road by next year, and this means that the wait is soon going to be over for those who are stuck with high insurance policy plans.

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Telematics Trends Focus on Risk Mitigation

Telematics technology has the potential to create business opportunities as well offer risk management solutions for the construction and vehicle sector.

Call it risk management. According to Allied Market Research, the Global Consumer Telematics market, is expected to grow during the forecast period, i.e. 2014-2020, with a CAGR of 33.7%.

Improve Transport & Logistics Processes

Recovery of construction segment is a trend that defines the telematics industry. Construction activities spur economic activities like transport and logistics sector. For businesses meeting deadlines are important for the completion of projects. For that picking up the workforce for projects from one location to another matter for project completion. Herein comes the importance of driver visibility in traffic or at adverse weather conditions.

Construction companies want to keep a tab on the movement of their vehicles. Telematics apps on mobile devices give access to employees working anywhere to share data avoiding paper work. Due to this, mobile telematics has the potential to improve the transport and logistics processes.

To be specific a mobile telematics application monitors fleet management with the help of managers’ mobile devices that are connected to the cabs and drivers. Using a mobile app allows fleet professionals to view vehicle locations and current statuses, send messages straight to the drivers. Now let us come back to the construction sector. The Telematics mobile app enables contractors who log in to the app to trace data, connect with their fleet and ensure the smooth day today run of their projects.

I feel driver visibility is the key to the industry’s success. Employers contribute to the insurance premium of drivers. UBI on the other hand enhances driving behavior, mitigating fleet management risks. Improved driving behavior brings down premium cost. Rewards and social sharing on drive scorecards  will make fleet telematics humane thereby increasing driver morale to perform better.

The trend has been set. Telematics data do more than vehicle tracking and improving drive score cards. It extends to other business processes like workflow management, payroll, accounting, CRM etc. Telematics improve the above mentioned process along with segmenting risks to deliver precise customer insight, to build and retain customers.

Telematics to Combat Vehicle Theft

Car theft in the U.S. is another issue which I want to highlight. According to news released by USA Today the figure of stolen car cases rose to 1% in the first half of last year. Today telematics technology  can locate vehicles with its tools jamming mitigation and location networking features. During thefts the on-board device will sense this through the change in status such as g-force or speed data, sending SMS to the policyholder, alerting the police to make tracking of stolen vehicle easier. On the other hand, the track and trace capabilities will reduce the burden of the insurance sector.

Role of APIs

Business Application Programming Interface also plays a key role in making an impact in the telematics industry. This is by providing a common framework to deliver services to the customer with APIs by integrating with other business systems like route planning, risk management, invoicing, maintenance etc. Advantage for the existing as well as aspiring policyholders.

When it comes to technology Xemplar is second to none in risk management. Prime Technology Group telematics system Xemplar’s mobile app has excellent hardware with cost benefit. Xemplar’s data collection tools and engagement tools are answers to all challenges faced by industries.

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Why Xemplar Telematics System Is Worth Every Expense

Xemplar is Prime’s new enterprise-grade telematics application, designed to revolutionize the auto insurance sector by seamlessly integrating today’s most advanced technologies into your business.  In this blog, we will explore some of the most touted business benefits that come with behavior-based telematics applications.

For several years, auto insurers have been striving towards employing strategic approaches to address two primary issues: policy premium creation by forecasting risk, and claims examination for accuracy. These issues were primarily the focal point of discussion in the insurance industry.

Now with XemplarTelematics, auto insurers can finally harness powerful, easy-to-use technologies that make roads safer and provide the ultimate solution that can improve the performance of your business.

Technology That Best Fits Your Needs

For storage and analytics purpose, the demand for data is huge in any insurance organization. But the lack of standardized data, or structured data derived out of unstructured data, is still a major issue with them. Even there is a lack of standardization in telematics devices as well. All this do present significant difficulties to insurance carriers in their push to effectively incorporate telematics system in their scheme of information technology (IT) infrastructure. The principle players in the hallowed world of telematics ecosystem—whether they are car makers, insurance agencies and simply telematics service providers—are seeking a bigger slice of the market by coming up with their brand of telematics systems. Clearly, the insurance-based telematics market is growing exponentially.

In order to set up a UBI program, selecting the right technology that best fits your bill is just the primary test for insurance providers. Nevertheless, the absence of freely accessible driving behavior data that can be utilized and the existing licensed version of usage-based insurance (UBI) technology that is connected with launching and maintaining a telematics-based UBI program are driving the costs/expenses sky high. To be fair, for insurance providers, the measure of success is quite dependent upon their ability to build a compelling and profitable system without having to pass on the expenses of the gadget/device, installation costs and operation to buyers/policyholders. That would be detrimental to their success. But no worries, issues like these will sort themselves out when insurance carriers begin to blaze the trail with the deployment of telematics system. The future is now. So buckle up.

Talk about insurers facing challenges in employing telematics into their system. But this isn’t surprising. On the contrary, what insurance companies should need to do is to look from the benefits angle that fits within the context of the so-called new insurance ecosystem: prominent among them is the new paradigm that the magic words “Telematics”, “Mobility” and the up-market “Connected Car”can convey to insurance carriers. And, nowhere is this new paradigm clearer than in auto/motor insurance marketplace.

Insurers should overcome the speed bumps on the road to telematics. They can look at the highly sought-after mobile app Xemplar that can help them redefine customer engagement:

·         Offers a customized Telematics solution

·         Enables fast and efficient two-way communication between insurers and customers

·         Can reach drivers anytime, anywhere — and provide insurers with critical information in real-time

·         Streams relevant data that directly impacts underwriting

·         Stays connected with customer via social media

·         Applies predictive analytics to maximize data points

·         Enables Claims Resolution

·         Provides custom reporting

·         Opens new marketing channels

As insurers adopt new ways to market their products and trump up their sales, the focus will always be to delight the customers as companies create new services and experiences for them. At the center of this evolution is Prime’s mobile-based Xemplar Telematics app. It is in the forefront of disrupting the auto insurance market, the benefits of which is worth every expense.

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 Xemplar,  Vehicle telematics service provider helps Insurance industries to reduce  costs with a faster and accurate insights. Request a Demo and learn more  about Telematics system.