Brian Joss – A recent report released by Berg Insight shows that the insurance telematics market has grown in Europe considerably.
Last year saw a 28.2% growth and it is expected to reach 44.5 million by 2024 growing at a compound annual growth rate. This is more than three times the current amount. As we currently face an unparalleled crisis as a result of COVID-19, these projections will likely vary.
A similar pattern of growth, however, was also seen in North America which indicates a similar growth should soon follow here. The managing director of Legratron Electronics, Itumeleng Matshego, explains: “Certain insurance companies have already fitted telematics devices to client’s vehicles but there is plenty of space for growth. With the agreement of their clients, there are a number of advantages to using insurance telematics in this way,” says Matshego.
Some of these advantages include:
Attracting the best drivers: while some drivers may not like being monitored others may see its benefit. Connecting the telematics results to rewards or lower premiums if your drivers display good driving behaviour can attract lower risk clients to your client base.
Reducing the cost of claims: attracting low risk drivers is not a guarantee that drivers will not have accidents. It could, however, mean that the crashes are less severe and may occur less often.
Areas for improvement: the telematics data can be used to show clients where their weak driving areas are and what needs to be worked on.
Increase customer loyalty: rewards, frequent and personalised communication and providing data that helps your customers with their specific challenges on the road encourages customers to be loyal and reduce the chance of changing to another insurance provider.
Communication opportunities: it also provides a reason for insurers to make contact with their customers.
Personalisation: internationally, insurers use this data to create insurance plans that personally suit and reward a client.
Innovation: following the example of what insurers use the data for internationally can be used to develop unique reward programmes in South Africa that have not been done here before.
Road safety: be a leader in encouraging and prioritising road safety as company ethos.
Insurers that use telematics for the benefit of their clients, can benefit themselves in many ways. “The massive growth in the industry internationally should motivate insurers to make the most of what telematics has to offer their clients,” says Matshego.
CAPTION: Keeping track: on the road. Picture: Foloia.