CSC is unveiling a new telematics-based auto insurance technology offering, promising carriers the option of outsourcing the service or blending it into their own system.
The Virginia-based provider of software, services and outsourcing for the insurance industry said the new usage-based auto insurance offering relies on digital claims, policy administration and underwriting tech from CSC, combined with driver profile software from Scope Technologies, a tech company known in the insurance industry for its telematics products.
An unnamed Asian insurer based in the Philippines is testing the technology in a pilot project, CSC said.
As CSC explains, the telematics system will help insurers maximize the use of “pay-how-you-drive” risk assessment and underwriting so premiums and driver risk can be better aligned. Also, the system has immediate crash detection and accident recreation that can help simplify claims and also spot fraud.
CSC touts itself as being the first to offer end-to-end telematics that includes insurance/claims management support on an advanced actuarial platform. The technology can either be outsourced or used with an insurer’s own system.
“Data collected with telematics devices creates a big data resource that enables insurers to more appropriately price risk, thereby helping them focus on selecting, underwriting and serving the most-profitable customers,” Phil Ratcliff, vice president and general manger, CSC’s global insurance industry arm, said in prepared remarks.
CSC’s offering comes as usage-based auto insurance is expected to explode in the coming years. An industry analysis from IHS Inc.’s IHS Automotive said that 142 million customers will sign up globally for the telematics/infused policies by 2023, up from nearly 12 million in 2015.