ACORD LOMA 2013: Telematics from Two Angles

You can’t wander very far at an insurance technology conference without someone mentioning telematics. OK, maybe I was the one that brought it up, but still, the subject is at the top of many people’s minds.

I got the UK angle on this subject from Jamie Macgregor of Celent who explained that British insurers have a slightly different approach to the subject than insurers operating in the Colonies.

Insurers in England are targeting young drivers and offering telematics as an option to allow them to actually prove to the insurers that they are not awful drivers and older drivers that need to prove they are still young enough to operate a vehicle safely..

American insurers are working from a different angle. They believe good drivers are interested in analytics in order to get discounts on their premium.

Macgregor pointed out that young British drivers pay a higher upfront premium and get their money back as they prove they are quality drivers. American insurers, as we all well know, are aghast at such a concept.

Stuart Rose of SAS is working with American insurers on telematics, but he admits there is much confusion right now because insurers are “not sure what they are looking for” from the mountains of data they are collecting on the performance of their drivers.

Rose and SAS, of course, are masters of analytics and are looking for ways to deal with the challenges that the influx of driving data is bringing their way.

Both Macgregor and Rose agree that telematics will likely change the way personal auto insurance is sold throughout the world, whether it is for good drivers seeking rewards—in the form of discounts—or for poor drivers seeking to prove they can change their ways.

 

About the Author
Robert Regis Hyle, PropertyCasualty360.com

Robert Regis Hyle, PropertyCasualty360.com

Robert Regis Hyle is editor-in-chief of Tech Decisions magazine and technology channel editor for PropertyCasualty360.com. He has spent over three decades as a journalist for a variety of business and regional news publications including a stint with a weekly newspaper that he owned and operated. He has been with Tech Decisions since the magazine’s inception in 1999 and has written articles on virtually every issue and trend facing insurance IT professionals. Prior to joining Tech Decisions, he spent two years as editor of a sister publication, The Ohio Underwriter, where he covered insurance topics for the agency and carrier markets. He has spoken on insurance technology issues at various industry conferences such as IASA and ACORD LOMA and on a number of web seminars. He is a graduate of Xavier University in Cincinnati with a degree in Communication Arts. Hyle may be reached at rhyle@sbmedia.com

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