Telematics
INTRODUCTION
Since the first Pay As You Drive experiment by Progressive Insurance in 1998, almost everything has changed in telematics. It has transformed into a fast growing model that all insurers worldwide must revisit.
How important is the emergence of telematics for the global motor insurance sector however?
In 2010, the European motor insurance market - the largest in the world - was worth an estimated €124 billion. Insurers paid out almost €100 billion in claims to car owners. By comparison, we estimate that its telematics-enabled services market at €5 billion, or 4% of the motor insurance market.
This highlights the contrast between a major but maturing sector of the economy and a burgeoning pocket of growth. This also clearly indicates that any take-up of telematics by insurers will have a major impact for telematics service providers and device makers.
Does the reverse hold true?
In this study, we respond by analysing whether telematics will change the motor insurance market and how profoundly it will impact it.
We assess the present state of insurance telematics in the US and in Europe and the challenges ahead. We also identify and propose solutions to overcome them. Last not but not least, we analyse the continuing evolution of the industry value chain and attempt to detect the winners and losers.
This report will provide insights to insurers' management teams, notably CEOs, CMOs, CIOs,
Business Unit Directors and Directors in charge of risk management and claims management.
It will also interest assistance providers, automotive manufacturers, their tier-1 and tier-2 suppliers, telematics service providers (TSPs) and technology providers (TTPs), regulators and governments. Our investigation also brings responses to the following questions:
• Is telematics necessary for insurers and what are its driving factors?
• What challenges remain and what actions must be taken by each party to face them?
• How can customer acceptance for
Since the first Pay As You Drive experiment by Progressive Insurance in 1998, almost everything has changed in telematics. It has transformed into a fast growing model that all insurers worldwide must revisit.
How important is the emergence of telematics for the global motor insurance sector however?
In 2010, the European motor insurance market - the largest in the world - was worth an estimated €124 billion. Insurers paid out almost €100 billion in claims to car owners. By comparison, we estimate that its telematics-enabled services market at €5 billion, or 4% of the motor insurance market.
This highlights the contrast between a major but maturing sector of the economy and a burgeoning pocket of growth. This also clearly indicates that any take-up of telematics by insurers will have a major impact for telematics service providers and device makers.
Does the reverse hold true?
In this study, we respond by analysing whether telematics will change the motor insurance market and how profoundly it will impact it.
We assess the present state of insurance telematics in the US and in Europe and the challenges ahead. We also identify and propose solutions to overcome them. Last not but not least, we analyse the continuing evolution of the industry value chain and attempt to detect the winners and losers.
This report will provide insights to insurers' management teams, notably CEOs, CMOs, CIOs,
Business Unit Directors and Directors in charge of risk management and claims management.
It will also interest assistance providers, automotive manufacturers, their tier-1 and tier-2 suppliers, telematics service providers (TSPs) and technology providers (TTPs), regulators and governments. Our investigation also brings responses to the following questions:
• Is telematics necessary for insurers and what are its driving factors?
• What challenges remain and what actions must be taken by each party to face them?
• How can customer acceptance for