Do You Think Insurers Are Not Innovative? Think Again
Summary
The German Post Office first experimented with remote insurance sales at the beginning of the 1980s in Berlin and Düsseldorf using Bildschirmtext (data transmitted through the telephone network and the content displayed on a television set).This partially (only for a few months) connected car approach is based on the usage of data to identify good drivers, with the aim of keeping them as clients through a competitive price offered for the future.While it assures support in case of a crash, it is also a tremendous deterrent for anyone tempted to make a fraudulent claim, as well as for drivers engaging in risky behavior otherwise hidden from the insurer.So, best practices allowed carriers to maximize return on investment in telematics technology by using the same data coming from the black box in order to activate three different value creation levers: value-added services paid by the customer, risk selection and loss control.The story of the Italian auto telematics market shows how InsurTech adoption will make the insurance sector stronger and better able to achieve its strategic goals: to protect the ways in which people live and organizations work This article originally appeared on Carrier Management