Telematics data is categorically different than anything many insurers have likely dealt with before. Think about the raw telemetry that a vehicles accelerometer generates, which indicates forces acting on a car in each of three dimensions at a moment in time.
Convincing consumers to take the plunge and allow their driving performance to be monitored via telematics is only half the battle for carriers transitioning to a usage-based auto insurance program.
Convincing consumers to take the plunge and allow their driving performance to be monitored via telematics is only half the battle for carriers transitioning to a usage-based auto insurance program.
Turning raw driving data into actionable insights is a major challenge facing insurers trying to turn the corner and write usage-based auto coverage profitably.
The ability of auto carriers to economically collect information about driver performance will be a key factor determining the fate of usage-based insurance programs, particularly for smaller companies looking to compete against the industrys data-rich giants.
The New York Department of Financial Services today issued a bulletin to auto insurers doing business in New York urging them to adopt usage-based insurance programs.
There are basically three types of prospects for usage-based auto insurance programs, depending on how comfortable they are with carriers monitoring their driving performance.