Connected vehicle data holds great potential to revolutionize the outlook of automotive business solutions as we know today, laying the groundwork and getting them ready for the technologies of tomorrow. The automotive industry as a whole has been welcoming of the advancements in technology, with auto insurers leading the way in adopting telematics-based solutions to offer usage-based insurance programs (UBI) to customers.
Integrating telematics data within insurance programs has helped auto insurers monitor how their customers drive and price insurance fairly, to which 62% of drivers agree. Safer drivers are rewarded with lower insurance premiums, while those known to drive relatively rash are expected to pay higher premiums. Customers are also able to opt for PAYD or PHYD models depending on their driving nature and enjoy personalized insurance plans.
UBI Improves Automotive Welfare
While the incorporation of connected vehicle data and analysis into the automotive insurance industry does make things easier for the consumers, what makes it special is the extent of benefits it brings for the industry as a whole, that aren’t limited but feasible for the cars of future.
Here are the top advantages of activating UBI model with connected vehicle data:
In-arguably, the primary reason behind widespread acceptance of usage-based insurance by both the industry and the consumers is the potential for huge discounts on insurance premiums. UBI model has turned out to be incredibly beneficial for safe drivers with good driving habits, encouraging 25% drivers by offering discounts between 5% and 30%, as well as further benefits when customers stick with their policies. Lowered premiums means more savings for drivers and lead to happy, satisfied customers.
By way of rewarding customers with reduced premiums, UBI programs also encourage better and safer driving habits. Insurers typically monitor driver characteristics such as harsh-braking, sharp turns, over speeding, seat-belt usage and more, to decide premium costs. With a potential discount on the table for safer driving practices, customers will be more eager to improve their driving habits and become better drivers, leading to safer roads for all.
Telematics and connected vehicle data, collected by UBI programs, makes it easy to understand accidents while aiding swift investigation. It yields valuable information such as the crash location, action taken by the driver, vehicle speed and status and more. All this data makes it easy for the authorities to adjust claims and expedite pay outs.
Accurate connected vehicle data and reliable analysis make it easy for auto insurers to identify, prevent and eliminate fraudulent claims as well as safeguard the privacy of their customers and their driving data. Further, location and GPS data help drivers and the authorities pinpoint the exact location of the vehicle if it’s stolen.
Better Business Prospects
When auto insurance customers get a wealth of benefits and value with UBI programs, let alone the discounts in insurance premiums, they tend to stay loyal to the insurance companies and keep returning for a better product. UBI model paired with connected vehicle data ensures business sustainability, keeping in mind the modern approach and feasibility of the technologies involved.
Tap the UBI Opportunity With Easy Solutions From CerebrumX
CerebrumX is prepared to take your UBI journey to new heights with our powerful and digitally enhanced solutions. Through our Augmented Deep Learning Platform (ADLP), we curate measurable data to generate meaningful insights that auto insurers can rely on.
Whether you wish to optimize your usage-based insurance business with high-quality data, or enter the UBI segment to cater the growing demand, we’ll help you gather driver consent, maintain data privacy and activate mobility data ethically using our white label platform, CerebrumX secure Consent, to influence growth and higher ROI in usage-based insurance.
For more information regarding connected vehicle data and the evolving ecosystem around it, Contact us or reach out to our experts.