The benefits of telematics-based auto-insurance products could go beyond better risk selection and pricing—and could include better fraud detection and the ability to provide feedback to consumers on CO2 emissions, fuel consumption and other factors that may lower the cost of driving, a new Celent report says.
In "Telematics-Based Insurance: Has Its Time Finally Arrived?" Celent says insurers are overcoming historic obstacles by employing telematics, or usage-based insurance products.
Celent says the cost of devices, installation and servicing has declined and will continue to fall. The task of transferring data from devices to the insurer has also become easier, as data sent via the 3G network means consumers no longer have to transfer the data themselves to a computer and then send it to the insurer.
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