The expanding role of telematics

Posted by: UBI Telematics Category: Usage Based Insurance (UBI)

By 2022, there will be an estimated 2 billion connected vehicles on the road. This transformation will impact insurers, repairers and original equipment manufacturers (OEMs), creating new risks and opportunities.

Changing the Conversation

In the past, a lot of the interactions that an insurer had with the customer would be at renewal time or when there was a claim. With connected cars, insurers can now have a pipeline and ongoing communication channel to their customer, creating opportunities for service, engagement, and driver improvement. This signals broader thinking about what connected car data – or telematics – can do, expanding opportunities beyond only marketing and policy discounts.

For example, telematics can help improve the claims experience. Instead of requiring the customer to call or go online and submit details regarding an accident, the vehicle itself could initiate the first notice of loss (FNOL), sharing crash data with the insurer and repairer, and ultimately streamline the entire claims process.

In another example, based on the accelerometer and point of impact data, analytics can help insurers determine whether there may be injuries, and the most efficient method of inspection. The crash data can help route a vehicle to an appropriate repair or salvage location based upon customer preference and workload. It creates opportunity to get details to a repairer in advance of even seeing the vehicle, speeding and improving the estimating and parts ordering processes.

Delivering on the Promise      

Today telematics data comes from a variety of sources: onboard diagnostics (OBD) through aftermarket devices that gather data from the vehicle; smartphones, either alone or paired or “tethered” to a beacon or tag type of device using Bluetooth® technology; or embedded systems via vehicle manufacturers. For many insurers, building the infrastructure and systems required to gather, process and deliver the data is impractical from both a cost and resource standpoint, especially as additional channels come online in the future from dozens of different in-vehicle systems. The breadth of these channels can create confusion and raise questions around which technology to use, the longevity of each, and data standards, to name a few. As the technology develops further, the relationships between a consumer, an OEM auto manufacturer and an insurer will likely change.

Repairers could also benefit from access to information collected from connected cars. Aggregate data on which types of vehicles and accidents are occurring in a given area might help repairers know where to expand or grow their locations, and what type of equipment and training requires investment.

The ability to access more information via connected car data could also help inform future repairs. Today’s vehicles are becoming increasingly complex, and many OEMs now recommend or require repairers to complete pre- and post-repair scans on vehicles to help ensure vehicle damage is properly identified and repaired. These scans collect data from the vehicle itself on what parts of the vehicle are damaged via diagnostic trouble codes (DTCs), increasingly important as the electronic content and complexity of vehicles grows. As more vehicles become connected, repairers could get access to DTCs and other information regarding the accident before the vehicle even shows up at the shop. This would not only streamline the repair process, but could potentially inform better decisions regarding which parts need to be repaired or replaced, helping to avoid costly delays from missed damage. The ability to tap into data from similar types of accidents and damaged vehicles could also provide repairers with better insight for diagnosis and execution of the repairs.

As more information from the vehicle itself becomes available via connected car technology, the opportunities for improved communication and streamlined processes across the spectrum grows, and with it the opportunity to develop new relationships with the consumer and others across the ecosystem. Subsequently, selecting a platform that not only provides capabilities of today but offers the flexibility to quickly adapt to rapidly changing technologies and services in the future becomes ever more critical.

 

Read more at http://www.propertycasualty360.com/2017/05/11/the-expanding-role-of-telematics?eNL=5915f530160ba0ed40de2b58&utm_source=PC360_Daily&utm_medium=EMC-Email_editorial&utm_campaign=05122017

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