Telematics in auto claims is inevitable

The use of telematics data in claims likely holds more value for your organization than the use of this data in underwriting. This assertion may not be capturing many headlines, but telematics integrated into the claims process represents a powerful proposition for insurers and consumers. And, this technology is inevitable. Here’s why.

The pace of adoption for telematics in usage-based insurance (UBI) is nearing a tipping point. Experts forecast 60M-100M global UBI policies by 2020, which conservatively represents a growth rate of 60-70 percent per year. IHS Automotive predicts that 86 percent of new vehicles sold next year will have connectivity to the Internet. And, Progressive and Allstate have already accumulated well over 25 billion trip miles through their UBI programs. Given these figures, it’s only natural to explore where else the driving data can be applied.