Telematics technology may not reduce the frequency of auto insurance claims, but it does help reduce severity, reduce insured losses and help brokers provide value-added services to both consumer and commercial customers, speakers suggested Tuesday at the P&C Insurance Technology Conference.
“In general, what’s been seen is that the claims frequency doesn’t really decrease,” with telematics, said Phil Henville, senior vice president of solutions for Quindell plc, of auto insurance losses. “You still get the minor collisions but the claims severity is drastically reduced. So you still have crashes, you still have rear end collisions but you don’t have the fatalities and the total losses.”
Hevnille made his remarks Tuesday during a presentation at the conference in Toronto. Several insurers in Canada currently use telematics to monitor driving behaviour – such as speed, distance, acceleration, braking and cornering – and to set rates based on that behaviour.
Greg Meckbach – Canadian Underwriter.ca – March 10, 2015.