The use of telematics data in claims likely holds more value for your organization than the use of this data in underwriting. This assertion may not be capturing many headlines, but telematics integrated into the claims process represents a powerful proposition for insurers and consumers. And, this technology is inevitable. Here's why.

The pace of adoption for telematics in usage-based insurance (UBI) is nearing a tipping point. Experts forecast 60M-100M global UBI policies by 2020, which conservatively represents a growth rate of 60-70 percent per year. IHS Automotive predicts that 86 percent of new vehicles sold next year will have connectivity to the Internet. And, Progressive and Allstate have already accumulated well over 25 billion trip miles through their UBI programs. Given these figures, it's only natural to explore where else the driving data can be applied.

Driving data can transform claims.  In fact, there are very few steps in the auto claims process that can't be positively impacted by telematics data. Consider your claims environment in the near future:

• First notice of loss (FNOL) moves from days to minutes or seconds
• Immediately after FNOL, critical services such as police, EMS, and towing can be coordinated if needed
• Vehicle repair vs. replace becomes a near-immediate, automated decision 
• Injury causation and severity can be evaluated on the spot.

This is the tip of the iceberg, but it's enough to demonstrate the transformational potential of telematics in claims. Understanding the data will be your first step.