CLOUD & CYBER
Telematics from commercial to consumer Telematics currently occupies the commercial sphere , and although pay-permile insurtechs are now expanding into the consumer car insurance market , its position as a mainstream technology is debatable .
Mike Brockman , CEO of ThingCo , a company that develops next-generation telematics devices , believes the sector still has a long way to go before it corners the consumer marketplace .
He explains , “ The insurance industry has found it difficult to make telematics work economically across all sectors since essentially the technology has been given away free and the risk-benefit to outweigh the cost has been difficult to achieve . Therefore , telematics-based insurance policies represent about 2-3 % of all motor insurance policies . It is far from mainstream right now .”
Brockman says that progress is being made in the industry as innovation and technology develops . “ Some of the barriers that have stalled wider adoption are now being broken down as technology has both advanced and fallen in cost .”
A main driver , he believes , is the demand from customers for more personalised products . “ We are seeing increased interest in telematics from drivers who want a more personalised policy based on their mileage and like the benefits telematics can offer in helping them enjoy safer journeys with the assurance that if they are in an accident , the device will expedite support and smooth the insurance claim .”
Top 10 telematic countries
Leading the way in telematics by order of regional adoption
# 1 USA # 2 Canada # 3 Germany # 4 France # 5 UK # 6 Italy # 7 Russia # 8 The Nordics # 9 Asia-Pacific
# 10 China
* Insights from Valuate Reports
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