Prudent driving and a healthy lifestyle can be rewarded in the future with discounts or through telematics tariffs. People who eat healthily incur much lower costs in the health care system. Likewise, drivers who abide by the traffic rules make road traffic safer overall. In order to consciously promote this behaviour, insurance companies can offer telematics tariffs in the future.
This benefits not only all other road users or the health care system, but also the insured persons themselves. Telematics tariffs are characterised by discounts and rebates.e and are therefore particularly attractive for novice drivers, for example. Those who prove their cautious driving style by evaluating sensor data, for example from wearables, or by using an app, can actively save money.
Trigger and precondition for the changes in the insurance industry
AI in insurance is both the trigger for the changes and the prerequisite in the industry. For example, wearables such as smartwatches also provide health data and thus new insights into the development of health and physical well-being.
This creates transparency about the state of health so that deteriorations can be recognised at an early stage. On the basis of this data, people then have the opportunity to change their behaviour in order to prevent the Counteract deterioration.
This short excerpt from a ZDF programme illustrates the principle of telematics insurance.
But it is not only in the field of eHealth that networked devices create a new basis for decision-making and action. In a very similar way Connected Cars the data basis that provides information about the driving behaviour of the insured person.
With the installation of an app the insured person can Transmit data directly to the insurance company and thus document his or her driving style. The transmitted data acts like an alternative currency with which the insured person pays part of his insurance. In the future, networked ecosystems of all kinds can make new knowledge about almost all areas of life accessible, which can also become the basis for new telematics tariffs.
Insurance models to date and possible innovations
One of the major fears associated with the new telematics tariffs is that the idea of solidarity will be abandoned: Until now, the principle has been that as many insured persons as possible pay for the claims of individuals. In this way, the burden was spread over as many shoulders as possible. The new telematics tariffs are only one building block of a restructuring insurance industry that is affected by the digital transformation just like all other sectors of the economy.
The crucial question is whether this principle is actually called into question when there is more information about the individual insured. First of all, the advantage of telematics tariffs is that behaviour is rewarded that is costs less. This ultimately leaves more money for the care of the needy and for repairing damage.
The telematics tariffs do not change anything in terms of solidarity. Reducing tariffs for faultless behaviour, especially in the case of car insurance, is not an innovation of the digital age, but has been practised for many decades.
The digitalisation of the entire insurance industry is changing distribution channels and insurance models
Digitalisation enables new tariffs, flexible pricing models and discounts and leads overall to a Dynamisation the industry. One of the new Trends are micro-insuranceIn some cases, insurance is only taken out for a single device or for a short period of time. Overall, individualisation in the design of policies is increasing, so that the needs of customers can be catered for more and more.
The changes triggered by the digital transformation in the insurance industry affect all aspects of insurance. In marketing and sales, the traditional distribution channels are playing an increasingly minor role. Online department stores such as Amazon offer insurance as a matter of course, as do tourism companies and airlines. Even the spontaneous booking of a Supplementary insurance via app is no longer a dream of the future.
Data Science and Telematics Tariffs
Due to the networking of all areas of life and the digitalisation of all sectors of the economy, more and more data is being created at the same time. Data science makes this data accessible to insurance companies so that it can be used to develop new business models.
Forecast models form the basis for the new telematics tariffs. For this purpose, appropriate data sources must be developed, the data must be checked for validity and protected against manipulation, and Algorithms be developed for evaluation. However, this is not the end of the possibilities offered by data science.
The telematics tariffs themselves are only one aspect of what data science can do for the insurance industry. Further business models can be derived from the anonymised telematics data from car insurance companies, for example.
There is a reason why data is considered the new currency of the future: there is another utility value in the data itself that can be promoted. Far-reaching insights can be derived from the driving behaviour of thousands of insured persons. Accurate static values on the number of accidents or loss amounts of insured persons who have adhered to the road traffic regulations are in themselves a New basis for calculation in the design of new tariffs.
Instead of designing tariffs on the drawing board, in future they will be based on exact Data analyseswhich show exactly which violations of the StVO have a particularly high risk of causing an accident.
The possible correlations between driving style (acceleration behaviour) and irregular behaviour (exceeding the speed limit) are also informative. It is also possible that accidents often occur during long journeys to unfamiliar areas, such as on holiday - flexible tariffs that allow spontaneous booking of special insurance cover via app or directly from the car right before long journeys could absorb this risk.
In particular such situational and individualised tariffs are achieved by the exact calculation of risks through Big Data analyses are possible in real time. The knowledge that is created in this way can be used profitably in product development, strategic planning and marketing. Telematics tariffs thus represent a growth market of the future for the insurance industry in two respects.