Telematics and big data analysis have helped to determine that the safest drivers have a lifetime value of 3x compared to other drivers to insurers, and that the worst 10% of drivers are not profitable to insurers.
(Credit: Robert Kneschke)
The purpose of vehicle telematics is very clear. It will reduce, or possibly eliminate, the reliance on arcane rating tools, such as gender, age, marital status, education or even credit score. It also allows for real-time intervention to help avoid future claims and provides transparency to the consumer about why they are being charged the rates they are based on their driving behavior.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
