Today, dozens of insurers have launched telematics offerings, indicating that it is a prerequisite for remaining competitive; however, most insurers in the market are still unable to fully operationalize telematics and turn it into a profitable offering.
Executive SummaryInsurers leveraging simplified telematics data via a single driving score are only skimming the surface of its potential. Here, Earnix Chief Strategy Officer Dror Pockard urges carriers to fully integrate telematics into their business operations and to use contextual analytics to deliver tailored, competitive offerings to customers in real time.
According to TransUnion, the percentage of customers offered a policy with a telematics solution that monitored driving rose from 32 percent to 40 percent—and those customers who opted in from 49 percent to 65 percent. Nationwide expects the use of telematics to increase drastically over the next five years, projecting it to comprise 70 percent or more of its new business.