The auto insurance claims costs are increasing faster than ever, making it imperative to find a reliable way to reduce them. According to insurance statistics, around 40% of drivers who submit a claim are likely to change insurers within a year.
It becomes crucial to have a successful solution in place to manage the claim filed by the policyholder. The key to prompt claims management process lies in launching a more effective incident detection process, such as telematics.
Driving data on the spot!
Telematics is a revolution in the claims process. If someone involved in an accident has a telematics device in his car, insurers can determine in real-time where the vehicle was damaged, number of vehicles involved in the collision, the extent of the damage, and the probability of bodily injury.
This data is most commonly used for usage-based insurance. By analyzing driving data like speed, hard braking, telematics can help insurers estimate damages more accurately and even reduce fraud.
Insurance Telematics – Powered Incident Detection
Telematics-powered incident detection enables faster notifications to insurance carriers, allowing insurers to immediately begin assisting the policyholder and processing the claim, while facilitating vehicle replacement or towing services for the policyholder. It does so by leveraging collected driving data, available device sensors, and contextual data sources.
Telematics can deliver significant incremental value to insurers, including combating fraudulent claims. Also, the sooner an insurer begins to employ telematics, the lower the average claims cost.
A proactive First Notice of Loss (FNOL) service allows the insurers to react rapidly to an accident, collect as much information as possible and “freeze” the crash scene. The goal is to abate the risk of fraud. Moreover, telematics data and proactive FNOL can improve the claims management process and also reduce it by 10-15 days.
In a Nutshell
Even if only one of the vehicles involved in the accident have telematics installed, insurers can get a complete picture of the crash. With a broader data set, insurers will have a better understanding of the accident, including details such as impact force.
The insurance companies see telematics as a valuable option. Though it cannot happen overnight that all drivers will start using telematics or all insurers rely on the data for claims, change is definitely coming.