When it comes to auto insurance telematics, claims are where the rubber meets the road.
Claims make up the majority of expenses for automotive insurance providers. And claim resolution is both the reason drivers have insurance, as well as their biggest consideration when choosing a provider.
That’s why anything that can improve the claims process is hugely valuable to both insurers and their customers.
The technology that enables real-time transmission of data, insurance telematics has the potential to offer automated claims processing, lower operational costs, reduced fraud, and an improved customer experience.
Telematics data, whether gathered through on-board equipment or via smartphones like Zendrive, can tell us a lot about how someone is driving.
Information like acceleration, braking, speed, direction, location, rotational dynamics, and – in the case of Zendrive – distracted phone usage can be instantly shared with any computer server from nearly anywhere.
In the event of an accident, that relevant information also includes data like force of impact, weather conditions, traffic conditions, and time of day.
And as you may be beginning to notice, that is essentially much of the exact same information that insurance companies manually gather in order to process claims.
You know where we’re going with this.
For insurers, the typical claim filing goes something like this.
An accident occurs. Time passes, often a week or more. The customer finally files the claim. The customer provides information about the accident based on their best guesses. Maybe they’re telling the whole truth, or maybe they’re not. If the claim is even slightly complex, or if the company suspects fraud, the insurer sends out an adjuster to examine the vehicle and interview the driver. The parties file a revised claim.
For lucky companies, that’s the end of it. But for many, the next step is lengthy and enormously costly litigation in the event of fraud or a contested claim.
But with telematics, that situation all changes.
Telematics eliminate the guesswork and the ambiguity from claims filing. With hard, precise data, insurance companies can know exactly what happened in an accident. Who was speeding, who was looking at their phone, and who failed to brake? With telematics, all of this becomes real, actionable information.
Not only that, but it can be transmitted to the insurance company instantly, without waiting for a customer to file a claim.
That means insurance companies can use telematics to reduce or prevent losses due to fraud, eliminate the legal expenses and hassles associated therewith, slash operating expenses involved with processing claims, and offer their customers a truly superior, streamlined claims experience.
That saves time, money, and boosts customer retention.
For drivers and insurance customers, telematics-based claims processing offers a fairer and more satisfying experience.
Most importantly, the irrefutable accuracy of telematics data can help protect good drives against fraud. For too long, the first thing drivers were told to do after an accident is “write down everything and say nothing,” lest the guilty driver try to twist the scenario into being someone else’s fault.
Telematics help make sure the innocent and the honest get the claims service they deserve.
In addition, customers get a much better claims experience in general. Their claim gets processed faster, so their vehicle gets fixed faster. And with automatic data reporting, telematics even reduce the responsibilities and burdens on the customer, eliminating many steps of a process few drivers enjoy. That makes the whole experience easier for policyholders.
Telematics data – especially that provided by smartphone-based platforms like Zendrive – present a giant opportunity to automotive insurers.
By embracing it, insurance companies can improve their efficiency, and offer their customers a truly superior experience.