Drivers are starting to prefer policy pricing based on their behavior, but fear privacy issues. How will GDPR impact telematics?
Expanding telematics to consumers through smartphones can be the answer to insurers' mounting underwriting losses while supporting efforts by carriers to price risk more accurately, showed a recent consumer study from Cambridge Mobile Telematics.
The report, published in November last year by the American company and quoted by dig-in.com, indicates that car owners are actually starting to prefer companies to determine premiums based on driver behavior: of the 718 drivers surveyed, 73% agreed with this sentiment. By contrast, only 4% viewed gender, age, marital status and credit score as the most effective tools to price risk.
However, consumer are concerned about their privacy: about half of all respondents selected security concerns as main the reason holding them back from telematics-based insurance policies. Overall, 85% of drivers expressed interest in signing up for a telematics programs, if offered assurances that private information won't be misused, that the program succeeds in making them safer drivers (18%) and helps them monitor the driving habits of family members.
With GDPR "looming" on the horizon, the future of technologies like telematics, AI and Blockchain becomes, if not uncertain, at least more challenging. How European insurers plan to adapt the modern technologies to the changing legal system is one of the topics analyzed, on 16 March, at "IIF 2018 - MOTOR INSURANCE - the innovation challenge".
The event, taking place in Vienna, Austria, at the Bristol Hotel, focuses on the motor insurance segment and today's wave of change brought by digitalization and innovations, considered one of the most powerful in this industry's history.
The debates will also center on other important topics, including:
- How have the SECEE motor insurance markets in review fared in 2017?
- Profitability - the top issue
- Pricing - a matter of discontent?
- Dealing with the ageing car fleets - how should insurers adapt?
- Road carriers and insurers: top issues of a challenging relationship
- Current status and future challenges in the Green Card system
- Current status and main present challenges
- Estimated impact of the latest technological developments (for example - semi-autonomous or self-driving cars etc)
- e-Call and the Green Card system - benefits and challenges
- Technology in support to better services and operational efficiency
- Digitalization - the bridge to the next generations of customers
- Reducing costs and saving time - efficient use of technology in the claims settlement activity
- Using technology to establish a long term partnership with customers
More details about the event are available here.