Telematics-linked auto insurance plans, powered by mobility data, have been in the public eye for some time now. The usage-based insurance model took the auto insurance industry with a storm by reducing insurance policy premiums and offering personalized insurance plans.
While many insurers and policyholders might believe that there isn’t much different to UBI other than the low-cost factor, this fact is far from the truth. Even though the reduced premiums seem like the best possible motivation to adopt the UBI insurance model, it is the underlying factors and developments that result from spreading UBI on a larger scale, that make the real difference.
More Than Just Low Premiums – The Auto Insurance of Tomorrow
Connected vehicle data combined with the power of artificial intelligence and automotive IoT yield auto insurance products that go over and beyond customer expectations. The drivers of tomorrow rely on advanced technologies to make their driving experiences not just safe and protected but more fulfilling, which is exactly what usage-based insurance aims to offer.
Constructive Drive Feedback
One of the most important aspects of telematics-linked auto insurance, wherein the driver gains regular feedback on the driving behavior as well as interpretation of safe driving practices. This valuable feedback, basis accurate vehicle data and extensive analysis, helps drivers progress their road demeanor, develop effective skills and operate in an ideal conduct, besides learning about areas for improvement.
The UBI model gets a comprehensive perspective of the various vehicle parameters, including the odometer readings and fuel efficiency figures over a period of time. Owing to the heightened accuracy and reliability of this information when attained through connected vehicle data, it further assists drivers make informed decisions, control overuse of vehicles and instill driving practices that lead to higher overall efficiency, encouraging a greener and sustainable future.
Telematics powered insurance products consist the ability to reconstruct the accident sequence, for improved investigations by supplementing physical evidence and eyewitness interviews. By availing investigators access to valuable information such as vehicle speed, travel direction, impact value, crash summary and more, UBI helps get a clear understanding of how the event happened and what caused it.
Optimized Loss Claim
By utilizing connected vehicle data for the betterment of UBI model, auto insurers can further look at streamlining the process of claiming benefits for policyholders. Driver compensations and responsibilities in regards to the event could be evaluated with better ease and more quickly, leading to reduced time frames for claim dispersal and policy renewal. Insurers will also be able to detect fraud claims effortlessly.
Maintaining Long-Term Relationships
Usage-based insurance has led auto insurers to maximize customer experience and strengthen long-term and meaningful relationships with policyholders, through personalized plans, value-added services and enhanced overall protection. While this means that customers will have to spend a lot lower for insurance premiums, for the auto insurers the UBI model adds low-risk drivers to their customer base. The result is a perception of the insurer as more technologically advanced brand with advanced products, having advantage over competitors who wait and risk losing customers.
CerebrumX Paves the Path for Insurers & the Insured
If you represent an auto insurance company that likes to stay on top of the latest mobility trends, to offer your customers the best possible protection, then chances are you are keen to enter the UBI space. CerebrumX can lead your business to success with reliable products and customer satisfaction, achieved by using our connected data services to fuel your UBI efforts. Our AI-driven Augmented Deep Learning Platform (ADLP) crunches both real-time and historical data to provide you actionable insights with minimal supervision.
To make your job easy is our primary concern. That is why we created CerebrumX Secure Consent, a white label consent management platform to assist you in delivering privacy-restricted UBI services to policyholders with ease. Simply integrate our platform within your existing web/app architecture and offer GD PR and CC PA complaint services for enhanced customer coverage.