Telematics-Based Insurance: Has Its Time Finally Arrived?
Over 50% of the top UK and US insurers have a telematics insurance program in place. This proposition is unlikely to remain niche for much longer.
Many might think that the subject of telematics is now closed, but they are incorrect. Several factors have resurrected the topic, and indeed, much new investment has already been made in this area. In a new report, Telematics-Based Insurance: Has Its Time Finally Arrived?, Celent takes a look at how this market is developing, the emerging propositions and operating models, and the impact on IT.
“There are weekly announcements of new telematics-based offerings. Some big names are placing their reputations on the line,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance group and author of the report. “In our view, the barriers are no longer around the technology but rather the customer’s appetite. The question remains: can insurers make this an interesting proposition for the customer?”
The target audience of this report includes CIOs, CTOs, and other technical insurer staff tasked with evaluating the opportunity for telematics insurance in their market. Given the impact on core systems such as billing, rating, underwriting, and claims, this report will also be of interest to solution providers of these systems.
The report reviews progress in this market over the last several years, outlining the types of products available in the United States and the United Kingdom, as well as offering a view on what we might expect in the coming years. The report also looks at the impact of a telematics product on core systems.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
Overcoming Historic Obstacles
The Cost-Benefit Case
Choosing an Optimal Operating Model
Change Implications for the CIO
Leveraging Celent’s Expertise
Related Celent Research