With Americans clocking more time behind the wheel than everbefore, additional miles can be a challenge to auto insurers. Howcan insurers make a dent in accident frequency and severity, bothof which are currently on the rise?

Data tells the story. Americans drove a combined 3.1 trillionmiles over the 12 months through March 2016, with the average autoliability claim for property damage at $3,493 and bodily injury at$17,024, according to research from Verick Analytics. Notcoincidentally, in 2015, the United States experienced the "highestone-year percentage increase in traffic deaths in half a century,"according to the National SafetyCouncil. But what if an insurance company could reduceboth the frequency and severity of claims?

By having telematicsdata available for claims management, consumers andinsurers alike could gain a better understanding of how to mitigateclaims — almost before they happen. Data from a vehicle could alertdrivers to vehicle problems, such as low tire pressure that mightlead to a blowout, or warn of impending storms so the car could beunder cover, protected from hail or similar weather related perils.By offering driver feedback on vehicles and driving behavior, aninsurer can engage customers in new practices that provide value,with the potential for increasing customer satisfaction andloyalty.

See also: Here's how auto technology will changeclaims

Instant information

When a customer does get involved in an accident, data from automakers and telematics serviceproviders — paired with information on driving history andbehavior for the people involved — may provide some of thefollowing:

— Almost immediate triggering of claimadjustment processes, including applicable "totaled vehicle"decision making

— Instant alerts to emergency services andtowing companies

— Prompt damage assessments

— Identification of local participating bodyshops that have negotiated labor and parts pricing

— Early replacement parts procurement

This data can conceivably shorten the claim cycle, increasecustomer satisfaction, assist with accurate reserving, detectfraud, and take the guesswork out of reconstructing the accidentand ultimately assigning liability. For both auto physical damageand casualty claims, imagine significantly reducing the claimsinvestigation process, including potentially minimizing obtainingextensive testimonies and other corroborative evidence after anaccident and instead having the data from the vehicles in hand.Such information can assist in correlating any injury potential andhelp insurers assign appropriate claim adjusting staff withtargeted expertise.

Related: Telematics in auto claims isinevitable

Anticipating customer needs

What if an insurer could know if a vehicle isdrivable right at the scene of the accident? And what ifvehicle repair costs were such that a damaged vehicle could betotaled right away? When the towing service arrives, data from avehicle could be combined with data from the tow driver'sinvestigation and potentially transmitted to the insurer innear-real time. The system could determine whether a rental car isneeded and even arrange for it to arrive at the accident scene.Using vehicle damage data and analysis of past claims (includingprior red flags for potential fraud) — along with prefilling thefirst notice of loss — the claim organization might have sufficientinformation to reconstruct the accident and assess liability on thespot.

When a vehicle is stolen, an owner might be able to recoverproperty faster by using data received directly from the vehicle.Taking this concept one step further, by embedding relevant datainto an adjuster's workflow and claims management tools, anadjuster could avoid a time-consuming hunt for information throughmultiple systems.

Insurance companies leveraging telematics will continue toevolve and serve their customers more efficiently during the entireclaims process. Insurers could ultimately benefit by reducing thefrequency of claims and increasing the accuracy of theirassessments. That's how telematics can let data drive the rightdecisions.

Dawn Mortimer is assistant vice president of IoT/Telematics,Claims, at Verisk Insurance Solutions, a Verisk Analytics business.She can be reached by sending email [email protected].

See also:

Emerging risks in auto technology

4 technologies that are revolutionizing theinsurance industry

5 reasons to embrace telematics for theconnected car: What insurers need to know