Telematics and big data analysis have helped to determine that the safest drivers have a lifetime value of 3x compared to other drivers to insurers, and that the worst 10% of drivers are not profitable to insurers. (Credit: Robert Kneschke)
The purpose of vehicle telematics is very clear. It will reduce, or possibly eliminate, the reliance on arcane rating tools, such as gender, age, marital status, education or even credit score. It also allows for real-time intervention to help avoid future claims and provides transparency to the consumer about why they are being charged the rates they are based on their driving behavior.
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