It’s no longer a secret that the insurance industry has taken a step towards change and for good. Be it insurance telematics or usage-based insurance (UBI); technological advancements are having a dramatic impact on the automotive industry.
Traditionally, insurance companies followed a stagnant approach of measuring how a driver drives — using driver’s generic details like age, gender and even marital status. However, usage-based insurance is now changing the way industry operates. UBI can determine a fair and accurate insurance premium using a person’s actual driving behaviour.
Mobile telematics is, in fact, a huge boon for young drivers, especially for those who have been unfairly being charged with hefty monthly insurance payments. But it’s not just customers who are benefitting. With the growing popularity of mobile telematics, insurance companies are also setting themselves up for a profit gain.
1. Mobile telematics help insurers know more about their customers
Earlier, insurance companies not really had a clear picture of how their customers drove. It was only after many speeding and traffic accidents that they know their customers. But with the introduction of mobile telematics, things have changed completely. Insurance providers can now have more precise information about their client’s on-road driving behaviour like — how fast they drive, how slowly they brake, how quick they take corners, the amount of time spent behind the wheel, etc.
With all the clients’ information, insurers can analyse data in real time.
2. Mobile telematics is cost-efficient
Mobile telematics is the new champion of usage-based insurance — thanks to smartphones that are becoming essentially ubiquitous. Insurance companies are leveraging smartphones to get an insight of how their customers act on the road.
The smartphones we generally own have sensors in it that give insurers access to driving data like speed and distance travelled. With the help of these sensors, insurance providers can even know who’s driving (whether it’s the owner of the vehicle or someone else), when and where the trip is taking place, etc.
3. Mobile telematics keeps insurers ahead of the competition
Mobile telematics is actually a boon for the road’s safest drivers. While it rewards the safe drivers with lower insurance premiums, it lets insurers know the ones that are posing a threat to other drivers. As a result, insurance providers increase their premiums.
Mobile telematics provides rich insights to insurance companies and helps them build more competitive pricing and premiums, keeping them ahead of the competition.