An 'instant' approach to accident management & crash response
Instantaneous auto accident reporting reduces loss costs by $800-$1,025 per claim, Agero reports.
An auto collision is one of life’s most stressful events, and unfortunately, the frequency and severity of accidents have increased in recent years. U.S. Department of Transportation statistics show that a car crash occurs approximately every 10 seconds. When drivers and their passengers are involved in a collision, they need every resource available to protect their safety and well-being — and they need these resources as quickly as possible.
Swift detection of an accident can result in faster response and support for drivers and their passengers, but it may be challenging to do in the chaotic aftermath of a collision. Fortunately, strides are being made in accident management to ensure the response is as fast and efficient as possible and simplified for those involved.
Leveraging mobile telematics for better detection and response
Telematics is transforming the accident response process and playing a vital role in enabling faster response times. Early adopters within the insurance space have identified compelling use cases for telematics, including usage-based insurance, accident data for at-fault investigations and, most importantly, providing immediate emergency support following a crash.
Many telematics solutions can detect an accident, yet relatively few insurers leverage this capability to mobilize the response and support that drivers need, such as contacting emergency services or dispatching a tow. To maximize the impact for both drivers and insurance carriers, a crash detection solution must respond to an accident by prioritizing support for customers, while providing prompt notice of a potential loss to the carrier. By connecting drivers to emergency support and initiating the claim process, telematics technology can significantly alleviate drivers’ concerns following an accident.
How mobile telematics operate during a collision
So how does a mobile telematics solution work in responding to a crash/? The process entails a few steps.
First, telematics algorithms are integrated with a mobile app or in-vehicle device and use data from embedded sensors to monitor driving behavior, including potential crashes. When an event is detected, the solution triggers outreach to both the driver and highly trained agents to confirm the accident and determine the level of support needed. Device data can also be shared directly with emergency services to provide the vehicle location and driver details. This allows emergency services to arrive at the scene as quickly as possible and provide appropriate treatment.
Once the driver’s safety has been addressed, an accident tow can be dispatched to the scene to recover the vehicle.
Finally, the telematics solution sends a detailed response to the insurance carrier, including not only crash data but also details of vehicle damage or bodily injury captured by the live response agent during the call. If the appropriate conditions are met, a claim can be opened without manual intervention, accomplishing instantly what could otherwise take days or weeks for the claims organization.
Benefits for insurers and policyholders
Leveraging telematics unlocks myriad benefits, with the clearest and most notable being rapid detection and response to accidents. Automated methods can quickly identify and de-escalate false positives, minimizing disruption to customers who have not experienced an accident. Done correctly, using telematics with automation leads to increased customer satisfaction, even among those who do not experience an accident (e.g., a false positive). Pairing technology with skilled and empathetic human operators unlocks the greatest benefit, as customers who speak with a live agent after an accident routinely provide net promotor score (NPS) survey results of 70-80, qualifying within the “excellent” scoring range. NPS is a marketing metric that gauges how likely a consumer is to recommend a company.
Using telematics also helps expedite accident claim initiation, taking pressure off the policyholder and minimizing additional costs incurred from a secondary tow, storage fees, release fees, and other administrative charges. This instantaneous reporting helps ensure faster vehicle recovery and reduces loss costs by $800-$1,025 per claim, creating a win-win for both policyholders and insurers.
Helping policyholders when they need it most
Being involved in an auto accident can be one of the most chaotic situations that anyone experiences. In these instances, it’s critical to be there for those involved and offer rapid response and support. Incorporating telematics can ensure the safety of drivers and passengers while also assisting them in their time of need.
The use of telematics solutions is transforming the way insurers deliver on their promise to protect policyholders after an accident. With the ability to detect an accident and respond immediately, insurers can provide support to policyholders when it is needed the most. By leveraging these solutions, insurers improve customer satisfaction, reduce loss costs, and establish trust and loyalty with their customers by demonstrating that someone is watching out for both their vehicle and personal well-being.
Steven Fellows is a product manager at Agero and a key member of the company’s accident management team. He oversees the development of Agero’s accident management products and APIs, developing new features and ensuring seamless client integrations. Steven has a deep background as a product leader and over 15 years of experience in the insurance industry. He holds a bachelor’s in financial economics from the University of Maine, an MBA in finance from the University of New Hampshire and a master’s in management from Boston University. He is based in New Hampshire.
Opinions expressed here are the author’s own.
Related: