Auto insurers see a positive future for telematics

Hubio’s participation at the recent TU-Automotive Connected Car Insurance Europe gave us a great opportunity to gauge how the industry feels about telematics and usage-based insurance.

We ran a poll* during the event that generated some really interesting insights:

  • The vast majority of respondents (86.5%) agree that telematics is the answer to leveraging customer engagement in car insurance.
  • Almost half of the respondents (42.1%) feel the auto insurance market is not ready to take full advantage of the connected cars benefits.
  • More than two-thirds of those polled (68.4%) back mobile devices and apps as a stimulus for mass UBI adoption

 

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Telematics for greater engagement

Attendees at the show had a positive view of the future with an overwhelming 86.5% of those polled agreeing that telematics and the wider Internet of Things offers opportunities to better engage with customers and provide them with a personal and more accurate service.

Leveraging connected car technologies, products and services

However, many of our respondents feel that there’s still work to be done in order to maximize the potential of the connected car. A significant 42.1% believes that there is still room for improvement.

Asked for their thoughts on the challenges involved in the usage-based insurance value chain, an equal amount felt that adoption by insurers and end users is the greatest hurdle. Data and technology raised some queries, but only a couple of people polled felt that pricing would prove problematic.

Mobile devices and mass-market adoption

Our final question about the role of mobile devices and applications revealed a positive response, with 68.4% of respondents agreeing that they will boost mass-market adoption of usage-based insurance.

Hubio agrees that a driver’s smartphone should be an integral part of UBI as it becomes less niche and moves into more mainstream segments, where the cost pressures favour smartphone data capture in place of embedded telematics.

Hubio’s MiCar app extends the functionality beyond UBI and offers the driver engaging insight into the health of their vehicle, when pairing with a Bluetooth telematics device. DTC codes are interpreted to provide analysis and suggestions for fixes that could prevent a minor problem escalating into a more costly one.

Driver engagement is further enhanced with Mobi, a virtual environment that helps drivers understand their driving behaviour based on information captured during their driving activity. Translated into a driver score, this information can be beneficial for all motorists, particularly young drivers who seek lower premiums based on their actual driving behaviour.

The survey results offer an insight into how the insurance market currently views telematics and usage-based insurance – many thanks to all those who took part.

Source:

* 40 people in the insurance industry were polled at TU Automotive Connected Car Insurance Europe event on 12-13 April