The impact of telematics on the motor insurance industry

"There is a wide variety of pricing parameters used on the motor insurance market today - in many cases it is doubtful if their validity is statistically proven. For fleets, there is a 'disconnection' between needed and available information", Michael THEILMEIER, Senior Vicepresident, GEN Re, explained during the Motor Insurance Conference at FIAR 2017.

After analyzing the current pricing parameters used today, Michael THEILMEIER talked about the new technologies and their impact on the motor insurance market.

By 2035, (partially) autonomous vehicles could represent one quarter of all new car purchases worldwide, said the Senior Vicepresident of GEN Re, quoting data published by BCG - The Boston Consulting Group in April 2015. This will lead to a dramatic decrease in premiums.

Another technology with significant impact on today's motor insurance market is represented by telematics system. The insurance usage of the telematics technology is yet to reach its maturity. Italy is currently the most advanced country when it comes to telematics usage, being situated in the "learning phase" (where only a few top players understand telematics' full potential, define their own approach and push the selling phase). Countries such as Spain, Canada, US or UK are still in the "exploration phase" (a few pioneers launching pilot phases), while Germany and France have only entered the "incubation phase" (where first pilot companies launching these products focus on prices).

Regarding the popularity of telematics in the Central and Eastern European region, Michael THEILMEIER considers that the tariffs are too low for such products to be really useful on the passenger cars segment. "I am very skeptical about telematics for passenger cars in the CEE. The rates are too cheap", he explained. On the other hand, they could be really useful in the case of truck drivers, because they offer: GPS tracking in real time, predictive diagnostics, driver profiling and driver behavior functionality, fuel savings, reduced maintenance, and driver compliance.

Related articles

Evgeny POTOKOV, SCOR: The biggest P&C line of business [in Romania] cannot be unprofitable

"I think that stability is essential for insurance and reinsurance companies alike and, in order to be active in the market, we need a transparent and stable legislative framework, otherwise the rules are not clear and it is hard to plan business activities in the market with too many uncertainties", Evgeny POTOKOV, Senior Underwriter SEE, SCOR, explained during the Motor Insurance Conference taking place at FIAR 2017, presenting the company's perspective, as reinsurer, on the MTPL market in Romania.


Digital claims self-assessment solutions bring benefits to all players

In the context of digitalization and its role in improving the claims assessments processes, Richard NATHSCHLAEGER, Region Manager Austria & Italy, Vice Chairman CEE Advisory Board, AUDATEX, presented, during the Motor Insurance Conference at FIAR 2017, a solution for digital claims self-assessment launched by Audatex.


EC projection for 2060: Pillar I pension will decrease in all EU countries, except for Luxembourg and Denmark

The most recent report published by the European Commission, "The ageing of the EU - implications for pensions", has a bleak conclusion: Europe's population is ageing and, as far as pension costs are concerned, their share in GDP will reach 11.2% in 2060, compared with 11.3% in 2013, Falco VALKENBURG, Chairperson Pensions Committee, Actuarial Association of Europe, OPSG Member EIOPA, declared during the Private Pensions Workshop at FIAR 2017.


Esra KULAN, MILLI Re: What are the characteristics of the CEE reinsurance market?

The CEE region is characterized by motor insurance driven markets (especially compulsory MTPL), this representing more than 55% of the total Non-Life written premium, explained Esra KULAN, Deputy Head of the Foreign Inward Department, MILLI Re, at FIAR 2017, offering an insight into the reinsurance landscape in 2017 & Nat Cat Risk's transfer in reinsurance in the CEE region.




61st "Rendez-Vous de Septembre" ends today in Monte Carlo: review

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers ends today in Monte Carlo. The Nat Cat insurance protection gap, as well as the global insurance market readiness to deal with the increasing complexity of the cyber risks were among the most debated topics.



MONTE CARLO: Live news from the "Rendez-Vous de Septembre"

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers has started yesterday in Monte Carlo. XPRIMM publications on the CEE, SEE and CIS insurance markets are available at the XPRIMM stand in Fairmont Hotel as well as at the other event's venues.


See all