INSURANCE
“ Putting a dynamic insurance model into practice isn ’ t that easy ”
SIMON DICKS INSURANCE CHANNEL MANAGER , LYTX
First Notification Of Risk solutions First Notification Of Risk – or FNOR – solutions have skyrocketed over the past 24 months , looking set to make an even bigger impact on our roads as legacy insurance systems struggle to compete with the speed and accuracy of telematics .
“ We can assess risk before an accident happens at all and prevent it happening in the first place . We call this First Notification Of Risk ( FNOR ) – and it ’ s a whole step up from FNOL ,” explains Dicks . Although , he does point out that there ’ s still a long way to go in terms of finetuning the solution .
“ There are so many different companies out there selling cameras , selling telematics systems , and producing information in hundreds of different formats . Claims data will have to be standardised before the sector can really transform – we can ’ t just click our fingers .
“ Some of the big insurers are really just dipping their toes into insurance tech still ; ideas like usage-based insurance and FNOR represent a massive change for them . Insurance has always been done reactively , with underwriters analysing past data to forecast costs and premiums . Now , we ’ re going to calculate everything based on individual performance . It ’ s going to take a lot of data and a lot of time .”
Accelerated claims to streamline payouts The second major trend in UBI – specifically in the automotive industry – will be accelerated claims , triggered by on-device crash detection systems .
One of the major causes of delayed payments for insurers is deciphering and contacting all parties involved in the crash . Prior to digital solutions , it presented a logistical nightmare and meant vehicle owners often had to wait weeks to be compensated for damage . But UBI policies are already offering products that will settle these issues swiftly and efficiently by using the data to assess the crash site situation .
Crash detection is a common offering that even contacts the emergency services and records the incident in its entirety , prior and
42 January 2023