The emerging insurance telematics is revolutionizing the auto insurance industry. Insurers that embrace digital transformation will have tremendous opportunities to better engage with their customers, while providing new and improved services and also cut down costs.
The use of telematics is poised for significant growth over the next decade across multiple insurance verticals. Digitally underwritten insurance is projected to grow from $4 billion to as much as $33 billion by 2020. Despite insurer hesitance to adopt new technologies and consumer reservations about capturing their data in real time, these compelling statistics suggest that telematics is reaching a tipping point in the industry. Ignoring insurance telematics and data-driven technology could be risky.
Investment in telematics solutions helps overcome insurance industry challenges and offers revenue generation and cost savings opportunities. Insurers can now better control claims with telematics-powered incident detection, distracted driving detection, and safety score. Telematics device can also attract new customers and build loyalty among existing ones by providing intelligent roadside assistance, vehicle servicing, and stolen vehicle recovery in addition to the usage-based discounts afforded by the technology.
From decreased premiums for consumers to the adoption of safer driving habits, the benefits of telematics and usage-based insurance are noticeable for policyholders. With the growth of telematics set to continue at a substantial rate, insurers that implement usage-based insurance programs will also be in the best position to attract customers, assess risk, and remain competitive.
Please follow this link to see the infographic – Why Investing in Insurance Telematics Makes Good Business Sense
Disclaimer: This infographic has been designed by Intelligent Mechatronic Systems Inc. (IMS).