Insurance telematics: A game-changing opportunity – Accenture
Article Synopsis :
To acquire new customers and retain existing ones, motor insurance carriers need to differentiate themselves in terms of product offering, risk pricing and claims handling. Maturing telematics technologies and devices are driving the evolution of usage-based insurance and provide a solution for product differentiation, better risk management and enhanced claims experience that aligns with individual driver profiles.
In the research report “Insurance telematics: A game-changing opportunity for the industry”, the Accenture team highlight the latest developments in the global telematics space and outline the important success factors when developing a telematics strategy. These include the need for:
- Quick and agile pilots that enable continuous improvement
- A detailed understanding of the source of sustainable ROI in the short- and long-term
- Clearly developed and flexible propositions that will engage different customer segments, and drive value for end-customers, agents and brokers
- Recognition that telematics is only the starting point, not the final destination
The Accenture team hail telematics adoption as a win-win situation for both insurers and customers. The report also highlights that telematics is gaining momentum in motor insurance and cautions insurers to be prepared for the next phase of disruption for ensuring success in telematics.
Digital Insurer's CommentsTelematics systems are capable of generating actionable real-time insights that can help insurers enhance driver safety, customer satisfaction and ROI. However, insurers keen on implementing a telematics strategy need to broaden their understanding of telematics usage within the underwriting and product development life cycle. We believe that insurance telematics has moved passed the buzzword status in Asia and insurance carriers are starting to adopt telematics technology. Technology companies and automakers are rewriting the telematics rules and carriers who fail to spot the emerging trends in telematics will expose themselves to greater competitive risk in the coming future.
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