2023-10-20 22:24:39
By Mauricio Fernández, Commercial and Marketing Manager of Ituran Argentina.-
Insurance Day is celebrated on October 21, an industry that has undergone a deep and constant transformation over the years.
As time went by, the insurance business changed, adapting to the technological revolution and embracing a tool that made a difference: telematics.
When we talk about UBI insurance, we are referring to a modality in which the insurance premium is calculated according to the actual use of the car. This type of policy complements traditional products and allows you to know the mileage traveled by the vehicle, the places where it has been driven, the time it is in motion and, in this way, be able to evaluate driving habits. A decade ago, this innovation burst into the insurance world to stay, permanently transforming the way we understand and access it.
However, over the years, there has been a constant evolution in the functionality of this technology. Ten years ago, telematics devices were extremely expensive, which required and forced a significant investment by companies. At that time, strategic partners were not sought to minimize the impact of the investment, which is why many companies abandoned implementation projects. But, in recent times, the panorama has changed radically. Technology and connectivity have developed enormously, significantly reducing the costs of implementing telematics.
The Covid-19 pandemic, for its part, reduced the need for daily trips, and users began to value even more the fact of paying a fair price for the use they give to their vehicle, and to trust more in the privacy of your data. In this way, insurers began to take a more concrete and strong interest in telematics. Today, the main users of this technology tend to be young people, who drive newer vehicles on average, who are more open to adopting changes in their driving behaviors, and who compare different offers when contracting a service. Furthermore, it is important to keep in mind that over time, with the entry of new drivers, this trend will increase.
What is the future of telematics in the world of insurance?
In this context of constant changes in mobility habits and the market, it is essential to consider several aspects. Firstly, the exponential growth of mobility-related applications, which continue to transform the way we move and manage our vehicles (Uber, Cabify, etc.). Secondly, the marked reduction in mobility due to working from home or the hybrid work model. Finally, one should not overlook the fact that, today, many automotive terminals directly manufacture connected vehicles.
Looking to the future, new opportunities are opening up, including the possibility of accessing insurance premiums that more accurately reflect real risk, better profitability margins and additional benefits for policyholders.
Better claims management, greater transparency towards the client and differentiation in an increasingly competitive market are also anticipated.
UBI insurance and telematics in general are constantly evolving, adapting to the changing needs of society and offering more personalized and efficient solutions. Technology will continue to be a powerful ally in the insurance industry, paving the way to a safer and more connected future.
#Telematics #insurance #transformation #evolution