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

TELEMATICS CAN IMPROVE CLAIMS PERFORMANCE

what-is-telematics

The insurance industry has undergone tremendous advancements over the years, but not much change has been made in the process of handling a claim. Ever since the telematics technology has been introduced, it’s having a remarkable impact on the automotive insurance industry.

Telematics device can help responsible drivers save money on their vehicle insurance and also alerts the insurer immediately about an accident. Moreover, this technology can also extend a hand in the deployment of emergency services on the accident location, an important action in case the accident is serious. With telematics, claims process can become simpler and easier to complete.

1. A telematics device gathers data about the vehicle like acceleration, speed, braking and lane discipline, which helps the insurer process the claim. By determining the seriousness of an accident, the insurance company can also dispatch emergency responders, such as an ambulance, and police to help the policyholder.

2. With telematics, it becomes easy to determine the extent of the damage. If the vehicle is not in the condition to drive, the insurer can make arrangements for a tow truck.

3. The use of smart sensors can further help insurer to have a clear picture of how the accident occurred and what part of the vehicle is affected by accident. This assists the insurance company in completing a claim and also initiates the repair process.

Embracing telematics can bring a lot of advantages to insurers. The use of telematics will not only speed up the claim process, but also help insurers detect and prevent fraud. With telematics technology, it becomes easy for insurers to investigate claims, thereby saving millions of dollars in legal costs.

Telematics has huge potential to reduce insurance costs associated with fraud. Even if only one vehicle involved in an accident has telematics technology installed in it, insurance companies can still get a clear picture of how the accident occurred and the extent of damage suffered by the vehicle and also people involved. This gives the insurance company a lot more control over the claims process, while also saving money.

In a Nutshell

Installing a telematics technology in the vehicle can reward safe drivers with lower premiums. Not just this, it also lets insurance providers see who the real threats are, allowing them to surge those customer’s premiums, while lowering those of safer drivers.

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