Usage Based Insurance

 

In practical terms, Usage Based Insurance involves the tracking of a black box or smart device within a given vehicle in order to gain an insight into the driver’s driving habits. Having tracked the driver and compiled data on their behaviour on the road, the insurer is better prepared to assess how careful the driver tends to be. With this knowledge, the driver’s premium can be precisely calculated based on how much of a risk they pose on the road.

This brings a series of advantages with it over previous, approximate models of insurance. Because insurers are able to monitor driving habits closely, this means that they are able to provide a greater degree of accountability to reckless drivers by issuing warnings and opting to void cover in the event of continued risk-taking. Additionally, Usage Based Insurance allows the best drivers to get a cheaper rate and are no longer required to subsidise their more reckless counterparts, with those most likely to claim being charged more. This means that fewer claims will come in for processing, fewer pay outs are made, and all drivers are encouraged to proceed more cautiously.

 

Advanced Driver Assistance Systems

It is crucial to understand how the next wave of Advanced Driver Assistance Systems (ADAS) will help the driver in the driving process, including Intelligent Speed Adaptation (ISA) which will reduce the number of claims and claims frequency and therefore the pricing models currently offered by insurers.

Intelligent Speed Adaption (ISA) refers to a range of in-vehicle systems that revolve around making drivers aware that they are breaking the speed limit, and in some cases, actively curtail this illegal activity. Additionally, some vehicles will be able to autonomously alter their speed depending on road conditions; for example, a large vehicle may be equipped to automatically slow down when approaching a tight corner. ISA systems are soon to become a central part of usage based insurance, and will form an important part of how premiums are calculated.

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Road Route Risk Analysis

Road Route Risk Analysis involves analysing the conditions encountered by one or more mobile assets including the routes taken and the condition and types of vehicles involved, calculating an insurance cost based on the assessed safety of the journeys. This creates fairer rates, saving money for the best prepared and more accurately reflecting the journeys with the most associated risk.

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DriverHalo™

By combining this tracked data with our geospatial datasets, we can accurately map out your customers’ daily routine to indicate their day-to-day practices. DriverHalo™ brings geospatial data to your tracking data to transform your consumer profiling, minimising risk, reducing pay outs and ensuring that your premiums align more effectively with your customers’ lifestyle than ever.

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Pattern Disrupt

At Mapmechanics, we can augment your tracked customer data with geospatial information to provide an unparalleled insight into customers’ routines and interests. Beyond this, we can also track significant changes in customers’ behaviours to ensure that your customer profiling is always up-to-date, allowing you to reduce risk and keep pay outs down.

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