Telematics

TELEMATICS

Telematics as a solid case for insurance.

Essentially Telematic Service Providers (TSP’s) provide three key areas of enablement toward insurance companies to move toward UBI. The benefits in return towards TSP are then obvious.

Positive Choice

Typically an insurance product would be developed specifically with a certain LSM or market segment envisioned to take up the product. The Policyholder that typically selects a product that is UBI enabled via telematics is already attracted to the concept and therefore needs little in terms of explanation or sales complexity to encourage the product sale. The typical UBI driver has already experienced or at least is aware of the advantages of what the technology in his car brings in terms of safety, tracking and tax related record keeping. If he then gains benefit from the telematics technology in his vehicle in terms of his insurance, the sale becomes comparatively easy.

The advantage of this from the perspective of the TSP is that by association, leads to the TSP are generated by insurance product sales closed by the insurance company.

Customer Retention

By simply having a device installed as part of the insurance product requirements, a TSP would enjoy the benefit of having opportunity to upsell the technology with added features and value-added products, separate from the insurance company product. The general disjoint between the average life span of an insurance policy and that of a telematics device rental period is also overcome where Gullwing acts as an agent between the Insurance company and the TSP to ensure that the TSP receives its market related pricing separate from any agreement enforced by an insurance company.

The advantage for a TSP making use of Gullwing Telemetry Solutions here is that the TSP standard contracting and pricing is not influenced nor linked to the insurance company that requires the technology. As such, the TSP would retain the maximum from its customer’s ownership and own the customer as a technology user on its own merit.

Technology Platforms

The problem faced by insurance companies and different TSP’s having to transfer data between each other, is that each TSP develops their technology in their own ways and methods. The same can also be said for Insurance companies. This unfortunately means that the methods employed by a TSP to deliver data to one insurance company, will differ to that of another insurance company. In turn, the data delivered by one TSP toward an insurer will differ from another TSP.

Gullwing Telemetry Solutions serves as a data translator to enable the TSP to deliver the data in its own methods according to its own best practices and that data may then be translated into different formats to different insurance companies to service their unique products.

The advantage here being that the TSP need not develop at its own cost an entirely separate IT system to address the telematics opportunity.