Personal lines underwriting and revenues could be revolutionized with the use of monitoring units in drivers' automobiles, a technology executive said.
John Reynolds, vice president of new business for Waterloo, Ontario, Canada-based Intelligent Mechatronic Systems Inc. (IMS), said insurers who develop “Pay As You Drive Insurance” programs could place devices in cars to monitor the driver and use the information to formulate the policyholder's rates.
The concept has been around since the 1930s, Mr. Reynolds pointed out, but technology now makes it possible to accurately measure driving habits, giving people who really do drive very little a much lower rate than the average driver.
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