Mobile-based car insurance
A new app can transform a smartphone into a telematics device for usage-based insurance.
Tata Consultancy Services (TCS), a global provider based in India, has announced the launch of TCS Insurance Telematics Solution - a mobile application that turns drivers’ smartphones into mobile telematics devices.
The app is designed to facilitate usage-based insurance (UBI) - aligning consumer driving patterns and habits with vehicle insurance premiums. TCS claim that the solution minimises the need for a separate, potentially expensive, telematics device (a 'black box') provided by the insurer.
The MD of Novarica, a research and advisory company focused on insurance technology strategy, explains:
'Telematics data has the potential to radically change the way auto insurance is underwritten, and smartphone-based data acquisition presents a lower barrier for consumers than other methods. While some early adopters built their own telematics capabilities internally, insurers are increasingly turning to partners to help manage data capture and analysis in this important area.'
The President, Insurance and Healthcare, at TCS adds:
'Telematics is a game changer and will ultimately drive auto insurance premiums in the future. It provides insurers an opportunity to improve customer engagement and service, while having the potential to make our roads safer for all of us.'
The TCS Insurance Telematics application is available for iOS and Android devices.
By way of comment, it will be interesting to see how a true record of times of usage and driving performance can be obtained without the use of a tamper-proof 'black box' in a vehicle . . surely one would just leave the mobile at home if contemplating a road-race with mates in the early hours . .
Details from Tata below . .