We have written extensively in recent months on Insurance Telematics. Last week we shared a story titled “Telematics Expert to address European Conference on Reinventing Telematics and Vehicle Insurance”
But why do we do this and why do we believe that insurance telematics is such an important topic?
The best answer is perhaps to be found in research done and a comprehensive report compiled by PTOLEMUS Consulting Group. We would like to share content from an article on these findings:
BRUSSELS, May 8, 2012 — /PRNewswire/ —
Pay As You Drive will shake up motor insurers worldwide
International strategy consulting firm PTOLEMUS Consulting Group has published the most comprehensive report ever written on Insurance Telematics.
The 400-page strategic report is set to become the industry’s reference document, covering the global car insurance landscape, new telematic technologies, how they are turning the economics of the market upside down, response strategies for insurers and much more.
A free 60-page abstract of the study is available at http://www.ptolemus.com/insurance
With over 2 million customers, the Pay As You Drive (PAYD) market has reached its tipping point. We expect it to be multiplied by 50 by the end of the decade. Telematic-enabled policies will then generate €50 billion in premiums to insurers who have seized the opportunity.
This is good news for consumers worldwide. Low mileage- and safe drivers will stop subsidising fraudsters, road warriors and dangerous drivers. And save up to 50% on their car insurance premiums.
Frederic Bruneteau, Managing Director, describes the impact for insurers:
“Everybody has a plan until they get punched in the face, famously said Mike Tyson. Well, this is what could happen to numerous motor insurers if they do not reshape their strategy swiftly. The Internet is revolutionising all sectors and this is now the turn of the auto insurance industry. By enabling insurers to build their pricing based on the actual, real-time behaviour of drivers, PAYD redefines entirely the way to charge for motor risks. Underwriters must adapt to the new connected way of doing business.
After Italy, the wave is now reaching the UK and the US, where Moody’s recommended underwriters to “adopt it sooner than later”. We expect all developed countries to embrace the new model, with local technology- and business variants.”
The study is notably based on 2 years of research and over 80 interviews with key industry players in 18 countries including ALD Automotive, Allianz, Arval, Aviva, Axa, Continental, Covea, Daimler, Denso, the Co-operative Insurance, the European Commission, Generali, Groupama, Hughes Telematics, ING, Navteq, Octo Telematics, Orange, MACIF, Magneti Marelli, MAIF, Mapfre, Michelin, NXP, PSA Peugeot Citroën, Qualcomm, SAP, Standard & Poor’s, Telit, TomTom, Toyota, Trimble, Vodafone and Zurich.
Along with 220 tables and graphs, the report provides:
- Insights on the impact of the gender ruling, eCall, ERA Glonass, CONTRAN 245, the new Italian law, the emergence of the smartphone as a data probe, etc.
- Learnings from in-depth case studies of ALD Automotive, Amaguiz, Coverbox, Discovery Insure, GM OnStar, Hollard Insurance, Insurethebox, Liberty Mutual, MAIF-MACIF, Norwich Union, Octo Telematics, Progressive, Solly Azar, State Farm, Unipol, Uniqa and Zurich;
- The evaluation and ranking of 60 telematic suppliers and detailed analysis of 13 solutions;
- Clear recommendations on how to professionally address privacy issues;
- A list of 40 patents applicable to PAYD;
- A strategic review of the telematic insurance value chain and how it will change;
- The results of insurer business case studies in 4 countries;
- 10-year market forecasts for motor insurers, Telematic Service Providers, Telematic Technology Providers and mobile operators;
- Strategic recommendations to key stakeholders including governments, insurers, automotive OEMs, mobile operators and telematic suppliers.
The Full Study and its free Abstract can be downloaded at http://www.ptolemus.com/insurance
PTOLEMUS Consulting Group is the first strategy consulting firm entirely focused on the domain of location-based services and telematics. Run by Partners in Brussels, Paris, Milan, Munich and Boston, PTOLEMUS assists leading companies in defining and executing their strategy.