Ditching the telematics delay: insurers close the gap with better pricing at new business
The insurance industry has leveraged telematics as a tool to assess driving risk for some time now. However, one of the lingering challenges has been the delay necessitated by actually gathering driving behavior, preventing the insurer from providing the most accurate quote at the time of new business.
In today’s insurance world, a consumer must first sign up for the telematics program and log a certain number of trips over a period of time, usually six months, before the insurer has enough of an understanding of the driving risk to provide a revised rate.
This reality leaves many insurers unable to price new customers competitively, affecting their close rates in a price-sensitive market.
Eliminating the six-month telematics gap
Now insurers don’t have to wait. By calling on a secure database of driving data already available to be shared, insurers can have an instant understanding of driving risk and offer a personalized, competitive quote at the time of new business.
The benefits to an instant understanding of driving behavior are game-changing for insurers:
- Win over the most profitable drivers
- Gain a competitive edge by offering better rates to less risky drivers
- Eliminate monitoring periods that can result in up-charges and dissatisfied customers
- Expand revenue potential with more customers rated on actual driving behavior
- Increase customer satisfaction with a more personalized, stable price
Instant driver behavior data: What’s needed to make it work
In order to leverage accurate driving behavior data without delay, you’ll want a service that adheres to a few gold standards:
- Scale: The service must aggregate data from tens of millions of driving connections. A significant source of drivers provides a valuable match rate at new business.
- Sophistication: It takes years to collect the quantity of driving behavior data, plus matching loss costs, needed to accurately model driving risk and predict the cost of potential claims. The service must employ sophisticated driving analytics built on a foundation of telematics experience and data.
- Privacy: The service must maintain the highest standards in securing users’ data. This includes being transparent and obtaining permissions every step of the way.
The innovation is a reality
The good news is, this innovation, gold standards all accounted for, has already hit the market. It’s called Arity IQ℠.
Arity has an unparalleled understanding of driving risk, unmatched scale, and a customer-first mindset and is the only company to offer such game-changing access to pre-scored drivers.
Unlike other solutions in the market, Arity IQ meets consumers where they already are by understanding driving behavior data on tens of millions of consumers, gathered from mobile apps they use every day.
Interested in learning more about Arity IQ, our latest innovation to leverage driving behavior data to modernize the customer experience and help you close more new business? We’d like to hear from you.