Telematics for Insurance Claims
Learn how telematics can improve your claims outcomes
How does telematics improve insurance claims?
Claims make up the vast majority of expense for both personal and commercial auto insurance lines. Insurance telematics has been shown to significantly curtail these costs by reducing the frequency and severity of claims, helping identify and avoid fraud, and streamlining the claims process. Critically, telematics has also been shown to improve customer experience during the claims process.
What data is collected for a crash?
Telematics devices collect many vehicle and driver data points and the list grows daily. The number and variety of data points available to insurers to reduce fraud and optimize claims processing expands as telematics devices evolve. Common data points include:
- Force of impact
- Driver behavior
- Vehicle damage
- Rotational dynamics
- Sensor information
- Incident context
How is the data used?
The data collected is only useful if it can be translated into actionable insights an insurer can use to improve business outcomes. The collected vehicle data is analyzed to digitally reconstruct an accident in a way that helps reduce claims costs and improve claim efficiency. Common uses of crash data include:
- Assigning responsibility for a crash
- Estimating extent of crash damage
- Identifying and reducing fraud
- Notifying and dispatching emergency services
- Streamlining claims processing
These crash-related services, taken together, significantly improve policyholder experience and help insurers retain customers at a pivotal engagement point.
Benefits of telematics-driven claims
- Reduce claims costs by identifying and eliminating fraud, decreasing bodily injury claims, and cutting legal costs associated with contested claims
- Increase likelihood of retaining customers by improving customer experience during an incident through faster claims processing and decreased burden on the policyholder
Leveraging the Power of Telematics for Claims
Telematics is entering a new age characterized by expanding adoption, changing value propositions, and new opportunities. Adding telematics data to the claims function is one such opportunity. Doing so adds value for personal lines policyholders, commercial lines customers, and for the insurer itself.