Insurance App Development Progressive | Telematics
Have you ever considered how Insurance App Development could potentially revolutionize the car insurance industry and make the experience of buying insurance less of a necessary evil and more user-friendly? As technology continues to advance, do you think insurance companies will start investing more in app development to improve the customer experience and make car insurance more appealing to the average person?
“I’m looking forward to buying insurance for my car…” said no person ever.
Let’s be honest, buying a car insurance policy is usually seen as not an exciting moment, but more as a necessary evil. That’s something that a person must deal with. But is it something that won’t ever change?
Well, it’s already changing with the introduction and adoption of digital insurance and telematic devices. Automotive and insurance companies are using vehicle telematics data to improve customer service and grow the client base.
Read on and learn about the new wave Insurance technology and explore the ways how telematics can be useful to you and your customers and how the new tech can innovate your business bringing higher revenue. Also, explore whether a progressive insurance app is worth investing in!
Telematics Revolution | Insurance Industry
To understand the new wave of innovation in the insurance industry, it’s worth knowing what Telematics is in the first place. Telematics devices are connected to vehicles and serve as tracking tools. They collect tons of data that the insurance company can use for its “Usage Based Insurance.”
What data can a telematic device collect?
- Common driving patterns
- Daily mileage
- Typical speed
- Degree of vehicle safety
- Driver distraction
- Traffic and road conditions
- Heart rate and anxiety levels (stress factors)
All the navigation telematics device data is analyzed to change insurance prices based on the risks of a particular driver of a certain vehicle in the region. The new technology is a perk for safe drivers as they get a more fair price. And it serves an even bigger mission of promoting and encouraging good driving practices.
And in their turn, telematic tech helps insurance companies to calculate precise accident losses and lower the commonness of bogus claims. But let’s dive a bit deeper into what impact it has on the insurance industry as a whole.
Telematic tech may come in the form of:
- Insurance agency app
- Connect-in Device
- GPS navigation from telematic
- Onboard Sensors
- Mileage Detection
The Impact of Telematics technology on the Insurance Industry
- Acc. to PTOLEMUS, 83% of all vehicles will have an OEM-embedded vehicle telematics device by the end of 2024.
- Acc. Allied Market Research, the insurance telematics market is growing strong. By 2030 it’s expected to reach $13.78B at a CAGR of 19.5%.
As you can see telematics insurance statistics are speaking for themselves. It changes the way insurance operates, as under UBI, drivers are not required to gather and report driving-related info from their insurance company.
The Benefits of Telematics for Insurance & Businesses
|Benefits for business||Benefits for insurance companies|
|More efficient fleet management||Rates based on the risks of driver behavior (rate goes up if the driver isn’t safe when driving)|
|Better routing and dispatch||Reward safe drivers with lower rates (therefore they have lower risks of using insurance payouts)|
|Higher vehicle and driver safety||Flexible UBI rate options attract more customers|
|Decreasing fuel costs||Prevent fraud|
|Use vehicle emergency safety data||GPS anti-theft|
Also, a huge benefit of using telematics software both for insurance companies and clients is improved customer support. Communication and using telematics apps allow open and clear communication and also provide:
- Repair and maintenance alerts
- Recommendations for safety improvement
- More competitive and transparent pricing
- Better customization results in more appealing insurance packages.
- Overall improved engagement of clients
Telematics has several, cutting-edge uses in the insurance sector, making it the newest technological frontier for your company.
How Telematics Boost Insurer Profitability & Competitiveness
Harnessing the power of telematics applications can boost insurer profitability and competitiveness. But how exactly?
- Telematic systems boost customer engagement
- They keep insurers ahead of their competitors, giving them a competitive edge
- Providing telematic insurance product lead to reduced costs, and therefore more clients
- Adopting telematics created insurers’ tech-savvy image
- UBI projects allow app-based insurance companies to have better pricing evaluations, make better predictions, and adapt faster to future changes
Thus, implementing innovative technologies and developing a cross-platform application for your insurance business will drive your business growth and lead to higher revenue.
The Future Is Telematics Insurance: Tips for Implementing Innovative Products
Companies in the Insurance business should figure out how to implement telematics if they want to stay competitive in the market. And a professional telematics engineer as a telematic app developer can help to get a desired competitive advantage.
Here are a few tips for future app-based insurance companies:
- Get the full understanding of the telematic tech and your next Insurance App Development
- Learn how to use the collected data to help you develop your business
- Find a top-notched dedicated development team, like OmiSoft, for flexible and scalable telematics solutions for your business. This is important as new smart devices are appearing every year. That’s why maintaining and scaling your insurance app/solution is extra important.
- Insurers should be prepared that automotive companies already design native telemetry, which is something to keep in mind while developing insurance mobile solutions.
Learning how and finding the right people to implement innovative solutions is extremely important, as the new wave of tech is going strong and not planning to stop. At first glance, it might seem like hard-to-understand tech, but in reality, it is something that can help your insurance business grow very rapidly and bring more money. Just develop an app or software that does the work for you.
Real-World Case Study: New Wave Insurance Technology
Insurance and automotive companies have always been working side by side. And with the introduction of telematic companies big enterprises seek partnerships, to get their customers additional perks and therefore drive more sales.
For example, GM and Tesla are both already working on behavior-driven auto insurance.
- Tesla launched the program in Texas first at the end of 2021 and after successful adoption expanded to several more states in 2022.
- GM-owned OnStar Insurance has also planned to launch BBI in 3 states in 2022.
As you can see 2 big companies are testing the waters in the insurance sector, which is a good time to notice the trend and explore opportunities for your business. Regardless if you work in the insurance business or want to eye opportunities in the niche, there are many ways to turn it into a profitable business.
Although telematics technology is most dominant in the auto insurance industry, it can also benefit businesses in other industries. If you need telematics software developed, get in touch with us and book your free consultation.
So, if you need to develop custom telematics software — contact us and book your free consultation with a niche expertBook a call!
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