Telematics has been a compelling prospect for vehicle manufacturers. This combination of wireless communications together with vehicle-based information systems has allowed auto makers to build features into cars in order to attract more buyers. They might include navigation systems, in-car telephone capabilities through the driver's cell phone, voice-driven operation of entertainment systems, networked security systems and much more.
Telematics are also an attractive prospect for auto insurers, who are increasingly offering options to customers who are willing to keep a device in the car that tracks their driving habits. These devices can sense sudden accelerations, sharp corners, hard braking and mild to severe impacts, providing insurers with insight into the type of drivers they are covering, and offering safe driver discounts to those subscribers who are more careful. Today, it's estimated that one million vehicles on U.S. roads are using insurance telematics. While this number sounds like a lot, it's still a small fraction of the vehicles on the road, as insurance telematics have yet to reach the "tipping point."
Telematics Update recently surveyed 270 insurance telematics-focused executives, including respondents at insurers, telematics-service providers, consultant firms, telecommunications companies, software developers and others. The goal was to determine when telematics was likely to "go mainstream" in the vehicle insurance industry...Read More
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