TRACKER Managing Director, Stephen Doran, has called upon the motor insurance industry to recognise its core strength of pricing and underwriting expertise and form ‘industrial strength’ partnerships with corporate telematics experts to best enable it to maximise the opportunity that telemetry can bring the industry in the longer term.
At this week’s Insurance Telematics Europe 2012 Conference, Stephen says; “The first PAYD offering was developed, modelled and delivered by an insurer, who established ownership of data from the outset, and this model remains true to this day. Whilst this has worked well in some instances, such as those insurers targeting specific low volume, high premium driver niches, to move to scale and reach mass market insurers need to stop doing the heavy lifting themselves. Whilst the response to the gender directive is unknown, the directive itself is mass market, as future directives are likely to be.
“By partnering with an end-to-end service provider who can deliver installation, disaster recovery, data storage and bespoke data services, insurers will harness and utilise customer data more effectively. The current insurance telematics solutions being employed by insurers need reshaping to not just offer another data bolt-on. Data richness will be key to building customer retention and loyalty, indeed it is crucial that telematics is not just be seen as a risk evaluation and underwriting tool in isolation.”
Putting insurance telematics into context, TRACKER believes that the opportunities reach beyond individual risk pricing and validation to offer competitive insurance premiums and fraud detection and stolen vehicle recovery/immobilisation to tackle claims costs. By building a solution for mass market, insurers will be able to develop brand extensions, build new data revenues and strengthen customer loyalty and retention.
Concludes Stephen Doran: “Back in 2004 when I was involved in the infamous PAYD Norwich Union trial, my dream was to redefine the relationship between the insurer and customer. These ambitions remain true today but by capitalising on the technology, data and hardware strengths of TRACKER, we are truly in a position to offer insight into driver behaviour, use data to create opportunities to satisfy customers, introduce new revenue streams from data products and indeed, deliver a more innovate range of motor insurance products that will benefit motorists on mass as well as insurers.”