How Telematics Will Deliver Greater Business Value-Cognizant
Article Synopsis :
Rapidly accelerating advances in telematics and human-machine interface design promise to deliver not only superior driving experiences but also benefits across the automotive ecosystem and beyond.
Seeing a massive opportunity for insurers “How Telematics Will Improve Driver Experience and Deliver Greater Business Value”, from Cognizant explains how telematics will become a substantial value-add for automakers and associated industries. The paper also discusses the potential benefits of next-generation telematics and the transportation ecosystems it will ultimately support.
According to paper, data from telematics is what drives significant value. Data captured could be about component status, car-related purchase patterns, fuel consumption, services needs and insurance provider and costs.
The value created will come in the form of better (not necessarily lower) pricing of premiums, more personalized offerings, improved product innovation and quality over time, and, above all, a superior travelling experience which will help build brand loyalty for future purchases.
Telematics benefits everyone in the transportation ecosystem. For Manufacturers telematics delivers improved turnaround times, cost savings and need-based auto making. For Dealers, it delivers more accurate car valuations, new forms of lead generation, and the minimization of revenue leakage by directing drivers to dealerships rather than third-party vendors. For Commercial Trucking and Equipment Manufacturers, it delivers real-time data fueled by predictive analytics, which will empower customer controls over supply-chain and logistics. For insurers, retailers, restaurants and entertainment providers, telematics enable need-based product offerings, with the needs often being immediate.
These benefits come with challenges—such as security, complex infrastructure and customer privacy concerns.
That said, Telematics technology opens a wide array of monitization opportunities for automakers and associated industries alike. By targeting demographic-specific telematics-based features, applying machine learning techniques to telematics-generated data and enabling cars to be part of an intelligent transportation network, automakers will be able to effectively monetize their investments.
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Digital Insurer's CommentsYet another whitepaper asserting the relevance of telematics to a wider audience—meaning, beyond insurers. For insurers, our audience, telematics will disrupt primarily auto insurance in at least four ways:
- Differentiated need-based product offerings.
- Attraction and retention of lower-risk drivers.
- More accurately priced premiums, rated in real-time.
- Reduced claims fraud.
The growing acceptance of personal data collection, especially by Millennials, will only increase the demand for telematics-based UBI products in future. For consumers, it’s about owning the power to control premium costs by reducing miles driven and adopting safe driving habits. Insurers, hungry for growth, need to develop strategies tapping into telematics for competitive advantage.
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