We outline the market outlook for auto telematics in P&C insurance — from market size, to leading companies, to recommendations for players in the space.
What is auto telematics?
Consumers expect their insurance purchases to be convenient, timely, and personalized. Telematics technologies can help deliver these attributes for automobile insurance.
Automobile telematics vendors provide turnkey technology solutions that allow insurers to monitor driving activity via Internet of Things (IoT) devices, mobile phones, and/or embedded car sensors. The technology solutions enable insurers to implement usage-based auto insurance programs such as “pay-as-you-drive” or “pay-how-you-drive.”
These platforms are supported by data analytics, artificial intelligence, and digital channels and tools that allow insurers to develop new categories of insurance products with personalized pricing and better claims services.
Features & capabilities
Auto telematics solutions provide P&C insurers with several capabilities and tools, including:
- Driver profiling with real-time driver habit and behavior analysis
- The ability to capture driving duration and behavior information through purpose-built IoT devices or mobile phones
- API connectivity with other underwriting and data platforms, particularly pricing platforms
- Real-time data synchronization
At a high level, these solutions are focused on reducing fraudulent claims, customer acquisition costs, and increase customer engagement with new digital channels.