Telematics: How big data is transforming motor insurance industry

True innovation is a rare thing, particularly in the insurance sector. But telematics could turn out to be a technology that will revolutionise the entire motor insurance industry.

Telematics refers to the use of wireless devices to transmit data in real time back to an organisation. The data recorded in telematics devices can be used to develop more accurate pricing, improve the granularity of risk management techniques and reduce losses by enabling better claims assessments.

In the motor insurance industry, the terms telematics and usage-based insurance (UBI) are often used interchangeably - but they are actually two different concepts. Usage based insurance is a broader concept that can be broken down into two categories: self-reporting policies and telematics-based policies.

Much has been written about the pros and cons of using telematics - and many have made a business case for implementing usage-based insurance in the motor industry.

This white paper focuses on the challenges insurers will face due to the explosion of data. It will also explain how analytics can help carriers analyse all of the information that will soon be available to them.

 Source: SAS