The use of black box dongles for insurance risk selection has, traditionally, been the primary driver of motor insurance telematics solutions. But new developments call for a strategic reflection on how to harness new and innovative telematics approaches to improve the insurance value chain.
A mobile-based member engagement solution has emerged as the key buying decision-maker, just as consumers’ expectations for mobile services are escalating. Yet the question remains: are insurance carriers prepared to make the hefty commitment required to produce compelling mobile engagement solutions for their businesses? Let’s take a look.
Demand for Mobile Engagement
With insurance ecosystems enabled and evolving by means of the ‘internet of things’ (IoT) and its requisite digital capabilities, mobile telematics is presenting tremendous possibilities across all insurance industries. And auto insurance is no different. The key to integrating a vehicle’s smart capabilities with your insurer’s administration system is, simply, the implementation of telematics solutions- an engagement mechanism that will enhance and extend the convenience, quality of life, and safety measures of consumers on a daily basis.
In an era where dongles and black boxes fitted to your car are becoming passe, mobile telematics solutions allow insurance carriers to leverage their service capabilities to connect with customers across all touch points, providing a seamless interactive experience.
The push to adopt mobile technology is quickly becoming the dominant mechanism for information access in auto insurance. Carriers are exploring new mobile capabilities for consumers, agents, and brokers. In fact, insurers should view mobile strategy from the tech-savvy customer’s perspective in order to remain up-to-date on the trends that their policyholders prefer. Through informed decision-making about their plan-specific policies, driving suggestions, traffic conditions/alerts, and real-time pharmacy information, claims statuses and payouts, and electronic payments, customers can fully and smoothly engage with their insurance carriers.
The secret to building mobile insurance solutions for the future is to connect the dots with value-added definitive metrics, including sales, loyalty benefits, FNOL claims filing, accurate pricing, geo-location capabilities, and coverage. These meld together to create customer satisfaction that packs a punch for your business!
Re-Imagining Insurance with Mobile Telematics
Usage-based insurance (UBI) is all about customized pricing, whereas mobile app-based telematics is all about the data use that plays into the aforementioned pricing. Granular telematics data sets gathered from connected sources (i.e., smartphones, tablets or other installed devices) can all be utilized towards pricing and underwriting excellence – a terrific benefit to add to the insurance value chain. In other words, customers can access accurate information about their policies, re-insurance processing, claims streamlining, and more. Right on their phones, all without having to physically visit the insurance office.
With UBI customers focused on value, insurers simply cannot compete on price alone. Prices cannot be the sole differentiator; this tactic is worn way out. To maintain a competitive edge today, auto insurance companies are using data capture and analysis in the areas of risk quantification, policy retention rates, and fraud detection to ultimately improve their level of engagement with customers.
The best way to streamline your underwriting and claims management operations is to ensure that you have an insurance telematics application that offers end-to-end mobile telematics and data solutions for your business to always stay a step ahead of others. In this respect, therefore, a premier contextually-aware mobile telematics engagement that provides the necessary scale required to rapidly ramp up and meet the insurance demands of tomorrow is the need of the hour.