Procuring Personalised Premiums
Insurance may not be the first industry you think of when it comes to a technological revolution. Communications is likely to top that list, followed by the retail, manufacturing, and logistics trades. However, technology is set to transform car insurance as we know it. Many will be familiar with black box technology – which has risen in popularity for its ability to provide cheaper insurance premiums to drivers deemed safe on the roads. But did you know that this technology has had an upgrade and looks set to usher in a different type of insurance premium – personalisation?
Data now underpins society, and for vehicles in particular, the data opportunities are countless. In fact, a single autonomous vehicle will record 30 terabytes of data each day – that’s 3,000 times the scope of the data collected on Twitter’s platform daily – thanks to sensors both in and outside the automobile recording every movement and interaction the vehicle has. For insurance purposes, the processing and visualisation of these spatial and temporal datasets will lead to insights that change the data from which premiums are currently deduced – revolutionising telematics insurance.
What’s Inside Your Black Box?
You might be thinking, “well, that’s great if you have an autonomous vehicle, but what about my 2018 Ford Fiesta?”
This is where the black box technology comes into play. The technology could soon be combined with geofencing tools to provide data on how, where, and when you drive. While there may be initial concerns about the use of this personal data, once you see the £££’s on your premium amended you may think twice about your data consent choices.
By utilising geofencing technologies, modern telematics can truly assess your car insurance risk to help calculate the accurate cost of your renewal premium and verify any claims. The GPS systems track where and when you drive, if you take breaks on long journeys, and the number of journeys taken. While accelerometer systems indicate speed, acceleration, braking, and cornering. By no longer relying on static information, this data is collected and processed in real-time, with the insights then analysed to optimise your insurance premiums on the fly.
This access enables insurance companies to build a picture of exactly what the modern driver looks like and how this varies per location, age range, career choice, and income bracket. Drivers already hand over a lot of data to these companies to calculate yearly premiums, so sharing something that could personalise outgoings to usage will be a no-brainer for many.
By Sarah Redman, Account Manager