TECH & AI
Telematics data provides the foundation for these models by delivering objective measurements of driving behaviour and risk exposure.
Motor insurers increasingly recognise that traditional risk factors such as age, location, and vehicle type fail to capture individual driving behaviour variations. Young drivers with careful habits subsidise reckless older drivers under conventional pricing models, whilst safe drivers across all demographics seek insurers that recognise their lower risk through reduced premiums.
Customer acquisition costs in motor insurance have risen substantially as digital comparison platforms commoditise policy shopping and reduce brand loyalty. Insurance companies must now compete primarily on price, margin compression forces them to improve risk selection accuracy to maintain profitability whilst meeting regulatory requirements for fair pricing practices.
Corrado emphasises the platform’ s role in supporting industry sustainability goals.“ In a context where companies are increasingly focused on social and environmental goals, OCTO confirms its role as a strategic partner for responsible innovation in the entire insurance sector and in telematics applied to mobility.” insurtechdigital. com 99