PCIT PLUSNews and Updates in the Property & Casualty Insurance Industry – A KMG Initiative



Do you know making calls behind the wheel can increase your insurance premium? The insurance industry is going through a much-needed revolutionary phase; telematics technology is on the boom.

Insurers can now assess policyholders’ driving habits and know when you are using your phone while driving, which could prompt warnings from your insurance company. This may result in premium increase, or even the withdrawal of cover.

A telematics device, also known as a ‘black box’, contains three main components: a GPS antenna, an accelerometer and a SIM card. These systems can act as an essential diagnostic tool to identify inefficient driving behaviours, and can communicate information like braking, acceleration and cornering.

Here are some of the most common bad driving habits that telematics can identify.

1. Speeding

Speeding not just increases fuel expense, but is also one of the most common reasons for road accidents. According to a research, more than 60% drivers admit to speeding on highways.

Speeding obviously has serious implications; it not just destruct the vehicle, but may also cause severe injuries or even death of drivers and passengers. Installing telematics in vehicles can pick up speeding violations that can be addressed, saving both life and property.

2. Harsh Braking and Acceleration

Studies have found that frequent, harsh brakes and acceleration can cost the vehicle an extra three miles per gallon. Sudden acceleration and sharp brakes indicate that the driver is stressed and not anticipate changes in road conditions or other hazards. Intelligent algorithms in telematics device can also detect behaviours like harsh cornering, heavy braking and hard acceleration, thereby reducing chances of accidents.

3. Lane Discipline

The GPS systems and accelerometers in telematics device can record vehicle movements on the road such as lane-changing manoeuvres. A sudden manoeuvre means drivers are overtaking or changing lanes carelessly, or in a dangerous manner.

In a Nutshell

Efficient technology like telematics can make the insurance industry more efficient and competitive. Real-time monitoring is the answer to the dire accident statistics. Installing a telematics device on the vehicle will not just keep drivers under the speed limit but also make them feel more responsible, protecting against legal and safety issues.

Getting real-time access on vehicle’s movement, can give insurers an opportunity to take timely corrective action and also avoid fraudulent claims. Not just this, drivers can also enjoy insurance benefits and discounted premiums.

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