TELEMATICS
The Way Forward in Insurance its implementa on, but the advantages offered by this technology are far more. To analyse the advantages we will have to evaluate the current scenario of motor insurance in India.
Vijay Sinha Managing Director & Chief Execu ve Officer DHFL General Insurance Ltd. The advent of technology has enabled the possibility of hyper-localiza on and hyper-targe ng of specific audiences in terms of messaging, segmenta on, and serviceability. Telema cs is an enabler which provides the same opportunity in Motor Insurance ecosystem. It’s a potent tool that helps insurance companies track, assess and modulate offerings and hyper-target underwri ng. It brings about laser-sharp focus, fair pricing, and truly offers what the customer requires. Each car owner and driver therefore becomes an ecosystem, a market and customer segment onto themselves. Across the globe, several insurance companies have brought forth differing levels of maturity in terms of offering true customiza on with reference to motor insurance. However, as is the case with each early-stage technology, telema cs implementa on in India is no excep on. There could be couple of challenges in PG.30 | Smart Automo ve | Jul - Aug 2017
Motor Insurance in India has always been an enforced requirement and motor insurance premium has been a func on of the make, model and loca on of the vehicle. Various other parameters , which may be responsible for the upkeep and maintenance of the car and its condi on, has been seldom considered, such as how frequently the car is driven, what distance is it driven at a stretch/during a day, what terrain is it driven on – within city or intercity, is it driven by night or by day, how safely is it driven and maybe more. These factors can directly result in a more meaningful risk assessment and pricing mechanism. In the current scheme of things in India, people who are driving less and/or driving safer in their self-owned car are also paying the same premium as those people who are driving more and may be in riskier situa ons/fashion/ mings.
As a star ng point, it can be safely assumed that people who drive fewer number of kilometres are in a way cross-subsidizing the insurance premium for those people who drive higher number of kilometres. Also, people who have safe driving behaviour are subsidizing the insurance premium for the people with bad driving behaviour. Telema cs in insurance can help eradicate this anomaly.
Telema cs based insurance helps in the real- me monitoring of the vehicle and the driver data along with focused analyses and reports. To successfully func on—the current technologies that are usually in the offering involve 1. A black box wired to the car’s electronics and hidden somewhere in the vehicle 2. A self-installed device which is generally plugged into the vehicles on-board diagnos c port (OBD) 3. Applica on installed in the Smart phone Once the device is installed in the vehicle, the data from the device are then analysed and key a ributes are then derived such as • Loca on • Speed • Distance travelled • Length of me driven for • Time of the day journey took place • Accelera ons & Decelera ons both longitudinally and laterally • Harsh accelera ons, braking or swerving events • Crashes These set of data can be used to evaluate the insurance policy premium amount, as well as give mely and accurate informa on when an accident occur. This can help the insurer to record quality ‘First No fica on of Loss’ informa on (FNOL) and understand liability as well as challenge poten ally fraudulent claims. Telema cs can serve as the pla orm for usage based insurance Pay as You Drive (PAYD) insurance, as also Pay How You Drive (PHYD) insurance. Pay as You Drive (PAYD) product is a usage based product in which premium depends on how much vehicle is driven www.telema cswire.net I www.coe-iot.com
