New players in auto insurance and fleets are turning to vehicle telematics data to lower premiums and improve driver behavior.
The world of auto insurance is undergoing a technological shift. Like online banks, insurtech or neo-insurers do not have physical branches and are therefore disrupting the market with more competitive offers than traditional insurers. These challengers rely on big data and artificial intelligence to offer companies in particular digital and personalized solutions. Their business model is based on a broader use of driver data and not just data on the history of policyholders (bonus-malus, claims history). However, in fleets, vehicles are often equipped with geolocation boxes (telematics) that constantly report technical and vehicle usage data. These tools enable Better tracking of cars and their drivers. By accessing this information, new insurers can improve their knowledge of their policyholders and identify risk profiles more easily thanks to specific AI tools. This ultimately enables themadjust their trade policies and grant discounts to the most efficient company fleets.
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Based in France since 2020, British unicorn Zego has positioned itself in this new market by offering flexible auto insurance contracts to fleet managers and independent professionals, including Basically, you only have to pay when you use the vehicles. To do this, Zego collects the telematics data of its customers in order to find out how their vehicles are used in real time. But also the behavior of the drivers. Zego technology includes a fully automated portal that uses driving data through AI to then generate behavioral insights. This enables fleet managers to better identify policyholder profiles and reward those who drive safely and responsibly. According to Zego, this approach would reduce business receivables by up to 10%.
Proactive risk management
“Telematics and IT have proven their ability to improve driving behavior. Combined with financial incentives, they are powerful tools to improve fleet security and reduce management costs,” said Sten Saar, CEO of Zego. Data mining allows for a better understanding of risks compared to traditional insurers. We are therefore able to offer more reasonable prices and better control.” Thanks to its technology and proactive risk management, Zego aims to reduce the level of premiums and the time spent on administrative tasks by up to 20%.
Published on 11/21/2022 updated 11/21/2022 Patrice Martinot