Vehicle telematics is neither a fad nor a mere addition to insurers’ pricing and underwriting capabilities—it is the catalyst for a range of new business models for auto-insurers. Telematics provides the opportunity for insurers to get much closer to their customers and gain a far richer understanding of their needs and motivations.
Through the data derived from telematics, insurers can not only develop and enhance customer ecosystems, but also gain invaluable insights for the development of the underlying insurance product. Vehicle telematics could bring about a shift in the way auto insurance is bought, consumed and serviced. And it is a shift that customers may be more ready for than their insurers.
To learn more: