Fintech Today
  • About
  • Banking
  • Insurance
  • Resources
    • COVID-19
Subscribe
No Result
View All Result
  • Digital Transformation
  • Customer Experience
  • Cybersecurity & Risk
  • Regulation & Compliance
  • Claims Management
Fintech Today
  • Digital Transformation
  • Customer Experience
  • Cybersecurity & Risk
  • Regulation & Compliance
  • Claims Management
No Result
View All Result
Fintech Today
No Result
View All Result
Home Uncategorized

Telematics and the Future of Auto Insurance

by Jackie Davis
May 29, 2019
in Uncategorized
Reading Time: 4 mins read
A A
telematics
Share on FacebookShare on Twitter

The insurance industry, especially the auto industry, has been using the same tactics to determine risk and price for years. Telematics is disrupting the way insurance companies write policy by offering insurers data on driver habits that can be used to influence policy price and coverage. What are the benefits of telematics for insurance companies and what can we expect to see in the near future?

Elon Musk Ventures into Insurance

Elon Musk, the founder of Tesla, is rumored to be entering the insurance business, and Warren Buffett, CEO of Berkshire Hathaway, isn’t worried about the competition. “It’s not an easy business,” Buffett told shareholders at the Berkshire Hathaway annual meeting. “The success of the auto companies getting into the insurance business is probably as likely as the success of the insurance companies getting into the auto business.”

Musk revealed that Tesla will be launching its own insurance product this month.  Musk said that Tesla has “direct knowledge” of a person’s risk profile “based on the car,” which gives it an “information arbitrage opportunity.”

Read more here.

Telematics and Auto Insurance

We spoke with Greg Donaldson, Senior Analyst at Aite Group, to discuss technology that is disrupting the auto insurance sector: telematics. “Telematics is a rapidly developing field that’s not only fueled by our ability to analyze and apply data through Artificial Intelligence and Machine Learning, but also because we have so many more devices able to capture and communicate data in real-time from the vehicle to the insurer,” Donaldson said.

In the past, insurers have relied on basic information about the vehicle and driver to craft a policy. With telematics, data gathered from transmitting devices paired with AI and ML work together to create a comprehensive risk analysis, helping insurers write more accurate policies. “All of this data becomes actionable,” said Donaldson. “It can be used immediately at the site of an accident to help the driver get the claims process started immediately. It can be used in accident reconstruction to enable insurers to build a more accurate assessment of what actually happened, rather than relying on witness testimony. And finally, it can be used to develop a more complete and personalized risk profile, which will ultimately have an impact on insurance rates for consumers.”

Read more here.

Connectivity Personalizing Insurance

The connected cars of today produce mass amounts of data that is changing the insurance industry. Thanks to this data, usage-based insurance (UBI) policies are becoming more popular. Using embedded telematics, insurers can collect and analyze this data to create a better policy. Companies like Progressive are using telematics to support electronic logging driving data for fleets, tracking the distance and time driven.

Other insurers have taken notice and are implementing telematics for personal vehicles. By tracking driving times, distance, and behaviors, insurers collect a vast amount of data that is then analyzed to determine coverage and policy price. For policyholders, this promotes safety and cost savings.

Read more here.

Tags: AIAite Groupartificial intelligenceBerkshire HathawayELelectronic loggingElon Muskinsurancemachine learningMLProgressivetelematicsTeslaUBIusage based insuranceWarren Buffett

RELATED POSTS

Contributed Articles

AI: Helping or Hurting Companies in Staying Compliant

March 9, 2023
Contributed Articles

Geopolitical Conflicts Reshape Threat Landscape and the Cyber Insurance Business 

December 2, 2022
Pandemic Relief Fraud
Banking

Artificial Intelligence Helps Combat Fraud, Waste, and Abuse and Protects $5 Trillion in Pandemic Relief Funding

June 9, 2022

TRENDING NOW

  • Cybercrime and Cyber Risk: Strategies for Protecting Your Organization

    503 shares
    Share 201 Tweet 126
  • What 2023 Means for Commercial Construction Lending

    515 shares
    Share 206 Tweet 129
  • Arizona’s Motor Vehicles Department (MVD) Makes Payment Offerings More Accessible

    657 shares
    Share 263 Tweet 164
  • AI in Financial Services: Where Does Ethics Fit In?

    553 shares
    Share 221 Tweet 138
  • Matching Buyers and Sellers in M&A

    540 shares
    Share 216 Tweet 135

CONNECT WITH US

Advertisement Banner Ad Advertisement Banner Ad Advertisement Banner Ad
Advertisement Banner Advertisement Banner Advertisement Banner

BECOME AN INSIDER

Get Financial Technology Today news and updates in your inbox.

Strategic Communications Group is a digital media company that helps business-to-business marketers drive customer demand through content marketing, content syndication, and lead identification.

Related Communities

Future Healthcare Today
Government Technology Insider
Modern Marketing Today
Retail Technology Insider
Today’s Modern Educator

Quick Links

  • Home
  • About
  • Contact Us

Become a Sponsor

Financial Technology Today offers content and advertising sponsorships to leading technology solution and service providers. Interested in becoming a sponsor? Contact us!

© 2023 Strategic Communications Group, Inc.
Privacy Policy      |      Terms of Service

No Result
View All Result
  • Home
  • About
  • Banking
  • Insurance
  • Categories
    • Digital Transformation
    • Customer Experience
    • Cybersecurity & Risk
    • Regulation & Compliance
    • Claims Management
  • Contact Us