Consumers are showing more interest in auto insurance rates based on their actual driving behaviors, and some insurers have been answering these calls, but as technology advances both inside and outside of vehicles, more companies are expected to leverage advanced telematics.
The improving efficacy of data is leading to a shift from companies and carriers that have historically been leaders in telematics to a wider pool of users across the insurance industry, according to John Chalfant, senior product manager of the U.S. connected car team at LexisNexis Risk Solutions.
He noted as telematics solutions become more accessible, the more they will be embraced across the industry’s supply chain.
As we aren’t to the point where connected cars make up the bulk of vehicles on the road, the system will still need to blend in existing programs that derived data from aftermarket devices and apps.
“Obviously, connected vehicle data is increasing as more roll of assembly lines, but right now there is still a need for aftermarket devices,” he told PropertyCausualty360.com. He notes by leveraging data from both connected vehicle and existing aftermarket programs, insurers can offer telematics to all, and collect data from, all of their insureds.
Further lifting the potential for connected cars is the growth of 5G and the continued connectivity of the world itself, he said, adding this will allow for the leveraging of additional data sets.
The data collected from connected cars will be familiar to...