In a recent interview with Claims Journal, Dawn Mortimer, Verisk’s assistant vice president of IoT/Telematics Claims Product Management, discussed the trends and impact of telematics on the insurance industry. And, while many know telematics data can be used to price insurance and prompt driver behavior change, the Internet of Things (IoT) also presents opportunities beyond the connected car. In the podcast below, Mortimer explains the ways in which we are thinking about the car connected to the home and other cars on the road, and the ways that these connections and more can improve claims processing and customer service and engagement.
A Better Customer Experience
Today, claims account for about 70 percent of the premiums collected, and it can take days for an insurance company to become aware of an accident affecting the insured. “In this new world,” Mortimer predicts, “customers have the opportunity for instantaneous FNOL.” Customers could receive insurance services at the time of an event, and insurers could begin automating the claims process with event data transferred with the insured’s permission. For example, a driver involved in a vehicle accident could be speaking with an OnStar representative who connects the customer to his or her insurance company by referencing the VIN and associated policy. The year, make, model, and price value of the insured vehicle would be immediately known; and the insurer could begin to assess damage from crash data to determine whether the vehicle is worth fixing and, if so, preorder damaged parts to minimize days needed for repairs at the body shop.
There are many ways “data will drive change and new opportunities for customers,” Mortimer says. Telematics will evolve with cars talking to each other and communicating to drivers about the weather and traffic along their routes. She also foresees specific telematics data applications, such as being “geolocated around certain businesses, [so] maybe you’ll be offered coupons or deals that will drive you into those particular establishments.”
There’s a Lot for Insurers to Think About
Mortimer believes that the future for insurers will involve connected car policies and interacting with customers in connected homes and cities. To prepare, she recommends that our industry think about scalability for tracking and managing the amount and types of IoT data as well as ways to keep the data secure. Still, she assures us, insurers “don’t have to be experts” in data science or cybersecurity. Insurers can partner with other companies to bring together the storage, security, and business intelligence capabilities they will need.
Listen to the Claims Journal podcast with Dawn Mortimer now!