In the last few decades, we’ve witnessed an impressive evolution of telematics solutions, in an effort to make auto insurance fairer and roads safer across the globe.
From the very first GPS system launched in 1978 to the emergence of usage-based insurance via embedded black boxes, On-Board Diagnostic (OBD)-II systems, Bluetooth Low Energy (BLE) beacons, and the first smartphone-centric programs in 2010, telematics technology has come a long way.
But as mobility grows increasingly complex due to new paradigms, shifting behaviors, and nascent technologies, we’re in need of better solutions and platforms to understand and reduce evolving mobility risks.
More specifically, there is a global need for technology platforms that can ingest large troves of data from ubiquitous sources at scale.
Enter: Mobility Risk Intelligence (MRI), powered by AI and machine learning algorithms trained by over 200 billion miles of driving data, which is collected through the most ubiquitous device out there: the smartphone.
But how does MRI relate to and differ from traditional first-gen smartphone telematics, and what are its benefits that will help shape the auto insurance industry as we know it?
10 game-changing benefits of MRI vs. traditional smartphone telematics
MRI goes above and beyond traditional solutions, more effectively solving key problems in retention, acquisition, and long-term profitability.
Today’s insurers face high customer acquisition costs and limited visibility into a potential policyholder’s risk. As a response, MRI provides discounts through UBI programs along with easy, engaging customer experiences, as do most smartphone-centric solutions. But MRI goes a step further in strengthening customer acquisition with its Insurance Qualification Lens (IQL) platform.
1. Embedded insurance experiences
Through IQL, MRI allows for anyone, prospect or customer, to participate in digital test drive experiences via consumer apps they love and use every day. These experiences are not just offered to existing customers, but also to anyone who opts in, making it easy and affordable for insurers to offer savings and acquire preferred risk.
2. Advanced consumer analytics
Taking insights from millions of drivers across the globe, IQL analytics gives insurers access to important marketing analytics. It also provides access to advanced behavioral and contextual data for improved segmentation (Think: make key decisions based on which roads drivers take, nighttime driving, highway driving, daily or weekly mileage, and other valuable insights.)
As consumers search for new ways to save on their car insurance (partly fueled by this pandemic), they’re becoming increasingly open to switching carriers for the right deal and a better experience. For insurers, customer retention is more important than ever.
Engaging UBI programs that offer attractive discounts do help insurers with that retention issue, but MRI tackles it from all angles. Here’s how:
3. Discounts based on several critical risk factors
Keep prospects and customers coming back for more by offering fairer, more accurate scoring based on how they drive, how far they drive, and much more.
4. Family safety alerts
Get access to new risk insights like route safety for families, ensuring loved ones always opt for the safest route.
5. Automatic Collision Notifications
Provide timely, automated assistance in the moments of truth.
6. Rewards and gamification
Keep customers loyal by providing easy, seamless, and unique digital experiences throughout their entire journey.
In 2021, as a recent Auto Insurance Report suggests, the number of drivers on US roads was on the rise again, and insurers were facing higher costs and lower profits.
Smartphone telematics solutions and MRI both take these problems into account, helping improve policyholder driving behavior and reduce loss ratios. However, MRI ensures long-term profitability for insurers via:
7. Ultra-preferred risk acquisition
Acquire safer drivers and spend ad dollars on the right target market to ultimately improve expense and loss ratios. Price customers in a better way, leveraging data that is varied, fresh, and high in volume, and make smarter marketing decisions via IQL analytics.
8. Significant improvements in driving behavior
Unlike other telematics apps that provide limited avenues of ongoing engagement, the MRI platform offers critical insights and experiences that keep users engaged throughout the customer journey. Higher engagement leads to a significant increase in improvements in driving behavior. Our data shows that timely engagement and intervention can reduce the likelihood of collisions by 49%.
9. Reduction in fraud & claims severity
Reduce the cost of claims, fraud, and cycle times by instantly ingesting actionable claims insights through automated FNOL.
10. Better pricing & segmentation
Develop highly predictive frequency and severity models by leveraging the MRI platform, existing telematics data, and historical claims data - leading to a 6X better lift.
The crucial bonus benefit: MRI is ever-evolving & adapting
As we look ahead, we’ll see mobility continue to evolve, and mobility risks consequently become increasingly complex.
Alongside all of the unique benefits MRI provides over traditional smartphone telematics to help insurers solve problems in customer acquisition, retention, and long-term profitability, there’s one key added benefit: the future-proof platform is constantly refining itself with fresh data to understand and mitigate new risks.
To do so, Zendrive will continue to provide risk signals and insights to its growing partner base around the world. And that’s what truly sets MRI apart.
Learn more about Zendrive’s MRI platform via our comprehensive guide, or contact us directly below.