It’s no secret that in the last couple of years Data and our ability to handle, disseminate, and organize it has become a key topic. This can be said of our political, social, and technological areas of our day to day lives. For the purpose of this article however, I would like to focus on how Data in the automotive sphere of industrial life, more specifically; how the emergence of InsureTech in the world of IoT has taken strides that may change many things about how we drive, manage drivers, and handle legal issues involving driving.
In spite of significant progress made in the InsureTech world, much is yet to be debated and eventually implemented in regards to how telematics are used by insurers. In a recent conference “Next Gen Analytics and IoT: Powering InsureTech” organized by the Center for Executive Education at St. Johns University in New York City; many standing questions were brought up about the unique relationship that Telematics, and Insurance companies should have. These are questions that arise from the almost inevitable collision course they are on. These questions were intended to ensure that the eventual collision of insurance and telematics industries happens in the most streamlined, fair, and effective way possible.
The questions revolved around three main issues. To begin with, privacy; with regards to how much information is disposable for policyholders with regards to the personal data being collected telematically and whether or not they understand how their respective insurers are using this data. Moreover, Pricing standards; this issue focuses on how these insurance companies are using data collected to leverage prices and/or settle claims. Lastly, also relating to price models; how insurers might use telematics predictive data to set policy plans and how these can be justified or explained. These are valid questions that will most certainly need answers sooner than later due to the merging of these two industries happening rather quickly.
MarshallGIS telematics software solution LiGO® has been a key factor in a number of our customer’s settlement claims and have been key elements in police investigations into accident reconstruction situations which have later been used as proof for insurance companies. We sense that more of this is to come in the near future, and so should law enforcement and insurance companies alike. Asides from the grey areas yet to be defined by both there are strong arguments that support the fact that real-time tracking and other telematics features is really the only fair way for insures to set policies, as it offers a level of transparency and reliability previously unheard-of. Conferences like the one organized by St. Johns University in New York and the numerous other InsureTech events that are happening around the country are key in hashing out these guidelines to create a market that not only promotes safety but also has the potential of enabling insurers and insured individuals to save money.